Islamabad: Policy-level talks are underway between Pakistan and the IMF review mission, Pakistan has informed the mission about the implementation of the IMF’s strict conditions.
A report on the historic legislation related to agricultural income tax was submitted to the IMF, the income tax rate on agricultural income was made equal to that of the corporate sector.
The four provinces have completed the legislation related to agricultural income tax and the agricultural income tax rate was also fixed equally in all four provinces. The IMF has also been informed about the tax rate as per the legislation.
No tax will be imposed on the agricultural sector up to an annual income of Rs. 600,000, while 15% tax will be imposed on agricultural income between Rs. 600,000 and Rs. 120,000 per year.
A fixed tax of Rs 90,000 will be levied on agricultural income of Rs 12 to 16 lakh per year, a 20% tax will be levied on income above Rs 12 lakh in the annual slab of Rs 12 to 16 lakh, a fixed tax of Rs 117,000 will be levied on income between Rs 16 and 32 lakh per year, and a 30% tax will be levied on income above Rs 16 lakh in the annual slab of Rs 16 to 32 lakh.
Similarly, a fixed tax of Rs 650,000 will be levied on income between Rs 32 and 56 lakh per year, while a 40% tax will be levied on income above Rs 32 lakh in the annual slab of Rs 32 to 56 lakh. A tax of Rs 161,000 will be levied on agricultural income up to Rs 56 lakh per year, and a 45% tax will be levied on income above Rs 56 lakh per year in the annual slab of Rs 56 lakh.
