Imposing Tax on Agri Sector: IMF’s Demands
Published on: June 12, 2024.
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IMF Demands More Tax Collection and Agricultural Tax in Pakistan
The International Monetary Fund (IMF) has called for increased tax collection from provinces in Pakistan, as well as the implementation of an agriculture tax, according to official sources. The IMF has highlighted that the agricultural sector currently pays the lowest taxes in the country based on its income share.
In addition to these demands, the IMF has advised the government to utilize the national tax council to enhance provincial taxation. Currently, provinces contribute only one percent to the national revenues, a level that the IMF deems minimal.
The IMF has also urged the full collection of taxes on properties and sales services at a provincial level.
Earlier, the IMF had requested Pakistan to publicly disclose the assets of officeholders, government officials, ministers, and parliamentarians. Consequently, the IMF has recommended the adoption of strict anti-corruption measures in the upcoming budget for the fiscal year 2024-25.
As part of the agreement with the IMF, the Pakistani government is obligated to establish a portal for public officials to declare their assets. However, sources reveal that the government has yet to fulfill this requirement.
While the government has created a form for officials to disclose their assets, it has not been made available to the public.
Additionally, banks will be required to gather asset information from government officials when they open new accounts, as per the latest directives.
This move indicates the IMF’s commitment to promoting transparency and accountability within the Pakistani government.
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