PESHAWAR, Nov 21: In line with a decision of the Supreme Court, the NWFP government has written off over Rs37m out of the total Rs105m arrears the province is to recover from farmers on account of agriculture income tax, according to official sources.

Arrears payable by the farmers community of the province accumulated to over Rs105m by the close of last financial year.

However, in keeping with a recent SC decision, the NWFP had to write off some Rs37m out of the total arrears accumulated since 1996-97 financial year — when agriculture income tax was introduced for the first time on acreage basis in the NWFP.

The SC had declared illegal the levy of agriculture income tax for the financial years of 1996-97 and 1997-98 after a group of farmers — including the sitting provincial minister for revenue, excise and taxation — challenged the introduction of the tax without giving it cover under the provincial finance act (pertaining to those two financial years).

The then provincial government, according to official sources, had introduced the agriculture income tax through executive orders without getting it covered under the finance act.

“After doing the necessary calculations, Rs37m have been written off out of the total Rs105m arrears the farmers community collectively owed to the authorities concerned,” said the official sources.

In the meantime, the provincial government has thus far made recoveries of Rs43.5m out of the total agriculture income tax arrears, leaving the balance recoverable at about Rs24m.

Out of the 16 NWFP districts where agriculture income tax is applicable, a sum of Rs6m arrears has to be recovered from the farmers of Pehawar, Rs5.8m from Nowshera, Rs2.5m from Kohat, Rs1.7m from Mardan, Rs3.4m from Swabi, Rs3.8m from Bannu and over Rs700,000 from Tank district.

From Mansehra and Lakki Marwat, 100 per cent recoveries have been reported.