LAHORE:On the IMF dictate, Punjab has rewritten rules for Agriculture Income Tax for targeting 213 percent revenue jump in upcoming fiscal---2026-27.
The provincial budget 2026-27 numbers show the real impact of these far-reaching changes. For FY 2026-27, the budget estimate has been placed at Rs12.500 billion. In real terms, this is an increase of Rs8.509 billion over the revised figure of FY 2025-26. In percentage terms, it is a 213 percent increase year-on-year.
Agricultural Income Tax collection was Rs4.081bn in Accounts 2024-25. For FY 2025-26, the budget estimate was Rs10.500 billion but the revised estimate was reduced to Rs3.991 billion due to implementation delays.
Compared with the original budget estimate of Rs10.500 billion for FY 2025-26, the FY 2026-27 target is 19 percent higher. Against actual receipts of Rs4.081 billion in 2024-25, the new estimate is 206 percent higher. The White Paper states that the restructuring through a progressive income-based framework aligned with the Income Tax Ordinance, 2001, may improve the revenue outlook by expanding documentation and compliance.
