Investor Presentaiton
Chapter II - Estimates of Receipts
Board of Revenue (BOR)
BOR's collection is estimated at PKR 56.0 billion for FY 2020-21. The major tax
heads under BOR's purview are elaborated for the purpose of clarity:
Agricultural Income Tax:
STAMP
Stamp
Duty
Agriculture
Income Tax
Board of Revenue
Responsibilities
Registration Fee
E
Agricultural Income Tax (AIT) is an important Direct Tax of Provinces, collected
under the AIT Act of 1997. It is levied as a fixed amount per acre of land, or as a
percent of income of owners of agricultural land, whichever is higher. After 2001,
the Government had revised the land based AIT rates, w.e.f. from FY2019-20,
by doubling the existing rates. Similarly, the exemption limit for the Income Based
AIT rates had also been raised from PKR 80,000 income per annum to PKR
400,000 per annum in order to improve the horizontal equity between taxes on agricultural and non-agricultural income. The RE for AIT for FY
2019-20 is set at PKR 2.074 billion indicating 100% achievement of target.
Land Revenue:
Land
Revenue
Land revenue is a broad category and includes a number of receipts related to land revenue functions, the largest being mutation fee. This
category of Provincial Tax Receipts has a lot of potential and is expected to contribute PKR 20.0 billion to the provincial exchequer during FY
2020-21 which is 38% higher than the R.E for previous year.
PKR 14.5bn
Revised Estimate 2019-20
PKR
20.0bm
bn
Budget Estimate 2020-21
Stamp Duty:
Government has reformed the system by introducing e-Stamps to facilitate taxpayers, plug leakages in this tax collection and to ensure greater
transparency in the process of transfer of property. This reform has shown a decent growth since implementation of reform initiative.
A priority area for the Federal and Provincial Governments has been the Construction Sector. In order to provide impetus to the Sector, the
Government of Punjab has reduced the Stamp Duty rates for transactions of land in Urban areas to 1% from 5%. This step was taken as part
of the Tax Relief Package for the last quarter of FY19-20 and is expected to continue for the next FY. Keeping in view the incentive of a lower
Stamp Duty rate coupled with the annual growth trajectory the Budget Estimates of Stamp Duty for FY 2020-21 have been pitched at PKR
33.426 billion.
Excise, Taxation & Narcotics Control Department
Excise, Taxation & Narcotics Control Department provides services for collection of eight different levies/ taxes. The Department aims to
promote automation of its functions to optimize service delivery through reduced interface between public and Government officials. The major
tax heads under purview of Excise, Taxation & Narcotics Control Department are as indicated below:
Motor Vehicle Taxes:
Excise, Taxation & Narcotics Control Department collects 'Tax on Registration' and 'Token Tax' on motor vehicles. The BE 2019-20 of MV
Taxes was PKR 15.850 billion. The Revised Estimate for this tax has been pitched at PKR 9.7 billion, while the target for the next Financial
Year has been estimated as PKR 13.031 billion. The Department has not been able to achieve the target set at the start of FY19-20 due to
general slowdown in the economy whereby sale and purchase of vehicles was 40% lower than the previous year.
Page 11View entire presentation