“IMF Urges Pakistan for Aggressive Reforms as Provinces Embrace Agricultural Income Tax”

The IMF demands Pakistan impose a do-more policy; provinces have agreed to levy an agricultural income tax.

Agricultural income tax in 2024:

The International Monetary Fund (IMF) has demanded additional reforms from Pakistan for its new loan program.

IMF experts engaged in challenging virtual negotiations with Pakistani authorities, holding separate talks with representatives from all four provinces. These discussions included federal and provincial officials from the Ministry of Finance.

Additionally, according to sources, the IMF has urged Pakistan to improve income tax collection in agriculture, a demand accepted by all four provinces. They have been given until July 12 to finalize plans for tax collection by the agricultural department.

According to sources, the agricultural income tax rate will be applicable annually on incomes exceeding 600,000 rupees. The rates for agricultural revenue tax will align with those of regular income tax rates. Both federal and provincial authorities have agreed on a unified approach for agricultural income across Pakistan.

Provincial governments have assured the IMF of their full cooperation on agricultural income tax measures. The Ministry of Finance confirms positive negotiations with Khyber Pakhtunkhwa, where the IMF has acknowledged the province’s 100 billion rupee surplus budget.