Punjab Announces Massive Increase in Agricultural Income Tax

The Punjab government has raised the tax on agricultural income for the upcoming fiscal year, setting a revenue target of Rs. 10.5 billion — a 200% increase compared to the previous year.

According to the budget documents, commercial farms operating on a business scale in Punjab will now be subject to corporate tax regulations. Under this framework, individuals with higher incomes will also face a super tax.

The documents further state that penalties and default surcharges have been increased for those who fail to file tax returns or make timely payments. These changes are being implemented under the Agricultural Income Tax (Amendment) Act 2024.