PESHAWAR: The Khyber Pakhtunkhwa (KPK) government has decided not to levy any tax on agriculture sector in the upcoming provincial budget for the fiscal year 2011-2012. According to the sources, the federal government had issued directives to all the four provinces instructing them to impose tax on their respective agriculture sectors. In this connection, the provincial finance department had made arrangements to levy agricultural tax in 25 districts of the province and list of tax defaulters was also prepared.
Sources added that during the meeting of the Council of Common Interests (CII), Khyber Pakhtunkhwa government rejected the proposal to impose agricultural tax; however, it was compelled to raise and impose taxes in the agriculture sector when it was pressed further by the federal government.
However, after the strong criticism and opposition from the members of the provincial cabinet, KPK government has decided not to impose tax on agriculture sector for the fiscal year 2011-2012.-Online