Islamabad: The government has started considering imposing income tax on farmers to appease the International Monetary Fund (IMF).
The government has intensified efforts to appease the IMF on the issue of agricultural income tax, while preparations have also been started for an alternative plan regarding the targets for collection of agricultural income tax from the provinces.

According to sources, the returns regarding agricultural income tax from the provinces will be awaited till September 30. If the provinces cannot achieve the desired target of agricultural income tax and its returns by September 30, an alternative plan will be prepared.

In this regard, sources say that consultations may be held with the provinces on the fixed scheme of agricultural income tax in October. If a fixed tax scheme is brought for the agricultural sector, consideration will be given to bringing income tax up to Rs 5,000 per acre.

According to sources, like the business community, farmers and landowners can also be given a fixed scheme in October.

It should be noted that the IMF says that there is a continuous delay in the collection of agricultural income tax. The share of the agricultural sector in the economy is 24.5 percent, however, the share of the agricultural sector in taxes is very low and only 0.3 percent.