On Thursday, the Punjab Assembly passed the Punjab Agricultural Income Tax (Amendment) Bill 2024, introducing a new taxation framework targeting agricultural income, including income from livestock. The bill aims to expand the tax base on agricultural revenue by imposing taxes on higher-income farmers, while also introducing a penalty of 0.1 percent per day on tax defaulters.
Read More: Agriculture Sector Faces Funding Shortfall in Budget 2024-25
While some view the bill as a necessary reform to modernize the agriculture sector and improve tax compliance, others have raised concerns. A senior legislator argued that the bill contradicts Article 142 of the Constitution, which limits taxation on agricultural income. Additionally, critics have expressed strong opposition, calling the proposed 40 percent tax on farmers an “economic murder” that could harm the already struggling agricultural sector.
The passing of this bill marks a significant shift in Punjab’s agricultural tax policy, with proponents citing the need for fiscal sustainability and opponents warning of its potential negative impact on farmers’ livelihoods.
