Pakistan has agreed to impose a tax on agricultural income during discussions with the International Monetary Fund (IMF).
IMF officials conducted virtual negotiations with provincial officials of Pakistan for the new loan program. During these talks, the IMF urged provincial authorities to implement a tax on agricultural income, a proposal to which the provinces reportedly agreed.
The provincial governments of all four provinces requested time to formulate a plan for imposing the tax. This plan is to be submitted to the IMF by July 12.
Sources indicated that the tax on agricultural income will apply to annual earnings of Rs600,000 or more.
