Govt weighs Rs5,000/acre fixed agri tax if provinces miss IMF revenue targets

Profit, citing The Express Tribune, reported that the federal government is preparing a contingency plan to honour its agricultural income tax pledges to the IMF. Under this fallback, a fixed levy of up to Rs5,000 per acre is being weighed in case provinces miss their revenue goals. According to sources, officials intend to hold off until September 30 and check whether provinces hit agreed collection and return filing targets, with consultations possibly beginning in October if they fall short.

The proposed structure would follow the pattern of fixed-tax arrangements already used elsewhere in the economy, drawing farmers and landowners into a comparable system. The sources added that the government is also trying to win over the IMF on the plans, since the lender has repeatedly raised concerns about slow revenue collection from the sector. The IMF has pointed out that agriculture makes up about 24.5% of the economy but contributes only 0.3% of overall tax revenue.