Digitization of agri tax: BoR Punjab projects 50pc increase in revenue

LAHORE: The Punjab Board of Revenue (BoR) has projected 50 percent increase in revenue generation after digitization of agriculture income tax, stamp duty, abyana, and mutation fee, said sources from the taxation wing.

Already, the Board has surpassed the revenue target set for the outgoing fiscal year by 104 percent and the present digitization drive would plug loopholes altogether, they added. It may be noted that the Board had collected Rs40 billion out of stamp duty against the revenue target of Rs36 billion during 2020-21. So far as agriculture income tax collection is concerned, it could not meet the target of Rs2.5 billion and closed the outgoing fiscal year at Rs2.36 billion. Under the head of abyana, the Board could collect Rs3.3 billion against a target of Rs3.5 billion while it achieved the revenue target of Rs16 billion under the head of mutation fee during 2020-21.

Sources said the World Bank has extended financial aid of Rs363 million to the Punjab government for automation of the taxation system under Punjab Resources Improvement through Digital Effectiveness (PRIDE) project. The project was started in the current fiscal year and is likely to be completed within a period of two years.

They said the PC-1 of the project has projected 40 t0 50 percent increase in revenue throughout digitization of the system. Under the project, the Board would facilitate farmers to file their annual returns online, which would be linked to Punjab Land Record Authority (PLRA). The farmers would file returns under self assessment scheme, they added.

It may be noted that small farmers owning land up to 12.5 acre are exempted from income tax under the Agriculture Income Tax 1997. Those holding land above 12.5 acre and up to 25 acre pay Rs300 per acre income tax, followed by Rs400 acre up to 50 acre land holding, and Rs500 per acre against the land holding exceeding 50 acres. So far as orchards are concerned, the land owners pay Rs600 per acre income tax annually.

According to the sources, the Board was extending digitization of stamp duty up to the stamp papers valuing less than Rs1000 under stamp vendor management system to curb the sale of fake stamp papers at Tehsil level. Already, they said, the sale of stamp papers worth Rs1200 through Bank of Punjab is being carried out online.

The Board is also in the process of digitizing Crop Inspection Register (Girdawari) and sources have claimed that the project is near completion, as 99 percent of the task has already been met. The Board carries out crop inspection twice a year, both for Kharif and Rabi crops.

When asked about the challenges confronting tax broadening, the sources said the land holding is being sublet at a fast pace which is a major impediment to the whole drive. Also, they said, housing societies are occupying agriculture land fast, which is hitting the revenue generation campaign of the Board.

Copyright Business Recorder, 2022