Punjab Agricultural Income Tax Rules, 1997

PROVINCIAL ASSEMBLY OF THE PUNJAB RULING OF THE CHAIR RULING ON VALIDITY OF RATE-ALTERING NOTIFICATIONS UNDER SECTION 11, PUNJAB AGRICULTURAL INCOME TAX ACT, 1997: EFFECT OF NON-LAYING BEFORE THE ASSEMBLY UNDER ARTICLES 77 AND 127 OF THE CONSTITUTION  A.        BACKGROUND On 15 September 2025, Mr Zulfiqar Ali Shah, MPA (PP-96)/Chairperson, Standing Committee on Agriculture moved a privilege motion (83/2025) in the House asserting that the Government revised the rates of agricultural income tax through Notifications Nos. 1472025/233-RS(II) and 148-2025/234-RS(II) dated 05 March 2025 but failed to lay them before this Assembly at the time of presentation of the Annual Budget for FY 2025–26 in June 2025, as required under section 11(2) of the Punjab Agricultural Income Tax Act, 1997. A further notification dated 10 September 2025 purports to bring the revised regime into effect from 1 July 2025. I referred the motion to the Committee on Privileges and reserved my ruling. Two questions arise: i. whether section 11 of the Punjab Agricultural Income Tax Act, 1997 imposes a statutory obligation upon the Government to lay the rates related rules before the Assembly at the time of presentation of Annual Budget? and  ii. whether the constitutional scheme of parliamentary control over taxation — vesting authority in this House — has been respected? B.        CONSTITUTIONAL SCHEME AND STATUTORY COMMAND Constitution of the Islamic Republic of Pakistan is unequivocal. Article 77 read with Article 127 declares that no tax shall be levied save by or under the authority of an Act of the Legislature — in the present case, this Assembly. The Punjab Agricultural Income Tax Act, 1997 underwent substantial amendments vide Act XV of 2024. While making the enabling provisions for altering the rates of agricultural income tax through rules, the said amendment Act obligated the Government to lay before this House at the time of presentation of the Annual Budget any of such rules made during a financial year. Legislative intent of the Act of 2024 was to ensure that rates of agricultural income…