The Punjab Assembly passed the Punjab Agricultural Income Tax (Amendment) Bill 2024 on Thursday, introducing a new taxation regime on agricultural income, including income from livestock. The legislation aims to enforce a more comprehensive tax structure on agriculture revenue, targeting higher-income farmers and imposing penalties on tax defaulters.

Under the new bill, farmers with higher incomes will be subject to increased taxes, while those who default on their tax payments will incur a daily penalty of 0.1% on their total income.

The bill has sparked a mixed response. Some view it as a necessary reform to modernize the agriculture sector’s tax framework, while others argue that it overlooks the concerns of farmers. Critics, including a senior legislator, have condemned the bill, claiming it conflicts with Article 142 of the Constitution, which limits taxation on agriculture. Additionally, some have labeled the proposed 40% tax on farmers as an “economic murder” of the agricultural sector.

The debate over the bill highlights the ongoing tension between the need for fiscal reform and the protection of farmers’ interests in Punjab’s vital agricultural industry.