Islamabad (Commerce Desk) The government has accelerated measures to satisfy the International Monetary Fund regarding the collection of agricultural income tax, while an alternative strategy is being prepared in case the provinces fail to achieve the set targets.
According to sources in the Ministry of Finance, the government will wait until September 30 for the provinces to submit agricultural income tax returns. If the required target for tax and return collection is not achieved during this period, an alternative plan will be adopted.
Sources said that upon approval from the International Monetary Fund, discussions will be held with the provinces to introduce a fixed-rate system for agricultural income tax. In this regard, a proposal to impose a tax of up to Rs5,000 per acre on the agricultural sector is also under consideration.
According to the Ministry of Finance, a proposal to introduce a fixed tax system for farmers and landowners, similar to that for traders, is also being considered for October.
Sources said the International Monetary Fund has expressed concerns over the continued delay in collecting agricultural income tax, prompting the government to review various proposals with the provinces to achieve the set targets.
The government says a final decision regarding agricultural income tax will be taken after reviewing the returns received from the provinces and the revenue collected.