Islamabad: The government is considering imposing income tax on farmers as part of efforts to meet International Monetary Fund (IMF) requirements and achieve agricultural income tax collection targets.
According to details, the federal government has started preparing an alternative strategy in coordination with the provinces to meet agreed targets for agricultural income tax collection.
Sources said the government is considering the option of imposing income tax on farmers as it seeks to satisfy the IMF over progress on taxation in the agricultural sector.
Under the proposed strategy, provincial governments are expected to be given until September 30, 2026, to meet targets related to agricultural income tax collection and the filing of tax returns.
Progress made by the provinces in collecting agricultural income tax and meeting return filing targets will be assessed during this period, after which further measures could be considered.
