Pakistan has fulfilled a key condition set by the International Monetary Fund (IMF) by completing legislation on agricultural income tax in all four provinces.
According to sources, the tax on agricultural income is expected to generate revenue of approximately 300 billion rupees. The Federal Board of Revenue (FBR) and all provincial revenue departments have successfully reached this milestone.
Punjab Assembly passed the agricultural income tax law on November 15, 2024. Under this law, no tax will be imposed on annual agricultural income up to 600,000 rupees. However, income between 600,000 and 1.2 million rupees will be taxed at 15%.
Similarly, Khyber Pakhtunkhwa approved the tax law on January 27, 2025, while Sindh and Balochistan assemblies passed their respective laws on February 3, 2025.
The IMF has been informed about the progress on agricultural income tax legislation, and its implementation will begin on July 1, 2025.
With this major condition fulfilled, Pakistan is now better positioned for upcoming discussions with the IMF. The IMF delegation is expected to visit Pakistan in the last week of February, while the tax filing for agricultural income will be included in the returns due by September 30, 2025.
[embedpost slug="/pakistan-oic-agree-on-strengthening-trade-partnership/"]
