Advertisement
News

IMF Proposes 45% Tax on Agriculture Income as Pakistan Negotiates New Bailout Package

Advertisement

The International Monetary Fund (IMF) has proposed a 45% tax on agricultural income as part of Pakistan’s negotiations for a new bailout package, sources revealed.

The IMF has set a structural benchmark requiring provincial governments to amend their laws to impose a standard individual income tax rate of up to 45% on agricultural income. Finance Minister Muhammad Aurangzeb emphasized the need for taxing agriculture and property sectors to sustain the tax system.

Currently, the agriculture sector contributes only 0.1% to Pakistan’s total tax collection despite accounting for 24% of the economy. The IMF aims to reduce this disparity by urging provinces to adopt the tax rate applicable to non-salaried business individuals.

A deadline of October 2024 has been set for the implementation of this change. Additionally, the IMF has requested the removal of existing income tax exemptions for the livestock sector by October this year.

Advertisement
News Desk

Recent Posts

Senior Russian General Killed in Car Bomb Near Moscow

A senior Russian military official, Major General Yaroslav Moskalik, was killed on Friday in a…

16 hours ago

LUMS Launches CeDAR to Drive Blockchain and Web 3.0 Innovation in Pakistan

The Center for Digital Assets Research (CeDAR) at LUMS was officially launched on April 24,…

16 hours ago

IPAK Group Posts Strong Q3 Results

International Packaging Films Limited (IPAK) Group has recorded 66% increase in its revenues for the…

16 hours ago

AKU, Local and Global Partners Launch Landmark Malaria Elimination Project in Thatta

The Aga Khan University (AKU) marked World Malaria Day with the launch of the Thatta…

16 hours ago

Stanford Scientists Unveil Solar Panels That Work at Night

Researchers at Stanford University have unveiled a breakthrough in solar technology: a new type of…

16 hours ago

NDMA Warns of Severe Weather Across Pakistan, PMD Issues Heatwave Alert Ahead of May Storm System

The National Disaster Management Authority (NDMA) has warned of unstable weather conditions across several parts…

16 hours ago