Agricultural tax failure is political, not policy

In a column published by The Express Tribune, a former vice president of KCCI and trade expert argues that the first year of the agricultural income tax reflects a political failure rather than a policy flaw. According to the writer, nearly 445,000 taxpayers declared Rs306 billion in agricultural income during FY2025-26, yet provincial governments collected only Rs5.62 billion, roughly 2% of the declared amount. Punjab contributed about 396,000 of those taxpayers and Rs293 billion of the declared income.

The column attributes the shortfall mainly to politics, noting that large landowners wield influence across provincial legislatures, parliament and the Senate. It says many absentee landlords lease out their land while still claiming incentives meant for genuine growers, and that passing laws is easier than collecting from powerful constituencies. To close the gap, the writer suggests exempting holdings up to 20 acres, cross-checking land records, water use and crop output, and having major buyers withhold tax in advance when produce is first sold.

The writer also proposes that collected funds stay in each district to finance rural roads, irrigation and schools, and that compliant farmers receive public recognition. The column frames the issue as one of wider tax justice, arguing that salaried workers and documented businesses already bear a heavy load. It closes by contrasting groups that are easiest to tax with wealthier groups able to contribute more.