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IMF asks Pakistan to impose 45% tax on agriculture income: report

MM News Staff by MM News Staff
July 11, 2024
(Representational Image)

(Representational Image)

ISLAMABAD: The International Monetary Fund (IMF) has reportedly urged Pakistan to implement an income tax rate of up to 45% on agriculture income as part of its efforts to secure a multi billion dollar bailout package.

This condition forms a crucial aspect of the structural benchmarks outlined by the IMF for Pakistan’s upcoming bailout program, as per sources within the Ministry of Finance cited by Shahbaz Rana in Express News.

According to the report, the IMF has set a deadline of October 2024 for Pakistan to align its provincial laws with federal income tax regulations. Additionally, the IMF has mandated the removal of income tax exemptions for the livestock sector by October of this year.

Also read: Pakistan govt notifies 25% increase in salaries and pensions

Meanwhile, President Asif Ali Zardari has revealed the government’s intention to impose taxes on agricultural income in compliance with IMF conditions.

He emphasized that provincial governments will primarily oversee this initiative, focusing on large landholding farmers based on their profitability and expenditures. Zardari made these statements during the Professor Waris Mir Memorial Seminar held in Lahore, where he also addressed issues concerning media and democracy.

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