May 7, 2005	Saturday	Rabi-ul-Awwal 27, 1426

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LAHORE, May 6: The Punjab government proposes to revamp its agriculture income tax, making it more buoyant to achieve greater revenues. “We’re changing the tax formula from its current land-based mode into an income-based mode,” a senior official told this reporter here on Friday.

The changes in the agriculture income tax have been recommended by the consultant appointed to study various provincial taxes and to suggest changes to improve provincial revenue.

The government, the official said, was facing great difficulty in making the agriculture income tax buoyant. The law exempts the land holdings up to 12.5 acres, which, he said, “was the major snag in increasing revenues from it”.

“People avoid paying this tax by dividing their land to take advantage of the exemption. By shifting the tax into an income-based mode, we intend to put an end to this practice,” the official said.

However, he said, the government had taken no final decision based on the recommendations of the consultant so far. “Any change in the law will be announced in the budget for 2005-06,” he concluded.