Pak. to impose agriculture tax

By B. Muralidhar Reddy

ISLAMABAD, MAY 11. The Pakistan government has decided to impose agriculture tax and it is seen as part of its recent agreement with the International Monetary Fund (IMF) on economic reforms agenda.

The military government has entered into an elaborate agreement with the IMF before the international agency decided to resume the suspended programme of lending. The agreement makes it obligatory on the government to take a number of tough decisions on the economic front.

A meeting of the Cabinet presided over by the Chief Executive, Gen. Pervez Musharraf, on Wednesday night said farmers who own 50 acres and above would henceforth have to pay tax.

The decision is a follow up to the recommendations of the Implementation Committee on Agriculture Income Tax to `harmonise provincial legislation' on the subject. The tax would be applicable only to those whose taxable agriculture income exceeds the exempted limit of Rs. 80,000. It is estimated that there are about 20,000 farmers in Pakistan with an average of no more than 200 agriculture income tax payees per district.

The Cabinet has decided to empower provincial governments through their respective legislature, to grant remission of agriculture income tax in case of calamity or crop failure. Personal hearing has to be ensured before imposition of penalty. The Cabinet has approved toning down of penalties for failure to furnish Agriculture Income Tax returns and for default in payment.

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Section  : International
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