LAHORE, July 29: The Punjab governor has reduced the rate of agriculture land-based tax on mature orchards by Rs 200 per acre of irrigated land and Rs100 per acre of non-irrigated land.

A matured orchard (landholding) not exceeding five acres has been exempted from the farm tax.

The concession has been notified in the Punjab Agricultural Income Tax (Amendment) Ordinance, 2002, promulgated recently by the governor.

The ordinance would replace the Punjab Agricultural Income Tax Act, 1997 (1 of 1997). It is effective from July 1, 2002.

According to the Punjab AIT ordinance 2002, Rs300 per acre would be charged on mature orchards exceeding five acres of irrigated land while Rs150 per acre would be charged on mature orchards exceeding five acres of non-irrigated land.

Moreover, the land-based tax will be charged at the rate of Rs 100 per acre on a holding exceeding five acres and up to 25 acres of irrigated land, Rs 200 on a holding exceeding 25 acres of irrigated land. It may be mentioned that one acre of irrigated land is equal to two acres of non-irrigated land.—APP