Govt to consider fixed farm income tax if target not achieved

ISLAMABAD: The government has been in talks with the IMF over the recovery of the Agriculture Income Tax, sources said on Wednesday.

The International Monetary Fund (IMF) has pointed out continued delay in recovery of the farm tax target, according to relevant papers.

It is pertinent to mention here that the agriculture sector contributes around 24.5 % in the national economy, while the sector’s tax share has only been 0.5 per cent.

“The authorities will wait for the agriculture income tax returns from provinces up to September 30 after which, an alternate plan will be devised if the tax target could not be achieved,” sources said.

The government could consult with the provinces over a fixed farm income tax scheme in October, according to sources.

“The farmers and landowners could also be offered the fixed tax scheme in October like the trading class,” sources said.

The government could consider over Rs 5,000 per acre tax rate for the agriculture sector in case of the decision taken for the fixed tax scheme, sources added.