Provinces accept IMF’s demand for levying agriculture income tax

Both the Center and provinces are on the same page as far as levying tax on agriculture income is concerned as the four provincial governments have accepted the International Monetary Fund’s (IMF) demand for the imposition of the tax before Pakistan gets the new loan programme, reported 24NewsHD TV channel on Thursday.  

Sources told 24News that under the new arrangement, a farmer would have to pay the tax if his annual income exceeded Rs600,000.

The rate of tax on agricultural income will be equal to that of tax imposed on income from other sources.  

The consensus was reached at the end of the toughest virtual negotiations between the government and the IMF officials, sources said, adding that the Fund held separate meetings with the provincial governments, which would now submit their plans to the IMF for the tax collection by tomorrow.   

They told 24News that the international money lending organization also had constructive talks with the KP government on the subject.  

The Fund had proposed a 45 per cent tax on agriculture income as Pakistan negotiates a new bailout package with the global lender

The finance ministry officials expect the agreement for the new loan programme to be finalized in July.

The programme, which will be for a three-year duration, is expected to range between $6 billion and $8 billion, although the exact amount has yet to be finalized.

Reporter: Waqas Azeem