Islamabad (HRNW)- The government has begun considering new measures to increase agricultural income tax collection in an effort to meet International Monetary Fund (IMF) requirements.
According to sources, the government is preparing an alternative plan in case provinces fail to achieve their agricultural income tax collection targets. Provincial returns will be awaited until September 30, after which consultations may be held with the provinces in October on introducing a fixed tax scheme for the agricultural sector.
Under the proposed arrangement, consideration may be given to imposing a fixed income tax of up to Rs5,000 per acre. Similar to fixed tax arrangements for some businesses, farmers and landowners could potentially be brought under a simplified fixed-tax system.
The IMF has repeatedly expressed concern over delays in agricultural income tax collection. Although agriculture contributes around 24.5 percent to Pakistan’s economy, its contribution to overall tax revenues remains significantly lower, reportedly at around 0.3 percent.
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