Pakistan informs IMF: Pakistan has provided the International Monetary Fund (IMF) with information regarding the agricultural sector’s income tax rate.
Pakistan informs IMF, Policy talks between Pakistan and the IMF are reportedly in progress, according to private TV Geo News. Pakistan has informed the IMF about the legislation to impose taxes on the IMF’s condition, which is that provincial governments have passed legislation to raise the rate of agricultural income tax. The IMF has also been informed about the tax rate in accordance with the agricultural income tax legislation.
The paper states that up to an annual income of Rs 600,000, no tax will be imposed on agricultural income in Pakistan, which has maintained the income tax rate on agricultural income at the same level as the corporate sector.
According to the document, agricultural income between Rs 600,000 and Rs 120,000 will be subject to a 15 percent tax, agricultural income between Rs 120,000 and Rs 160,000 will be subject to a fixed tax of Rs 90,000, and income over Rs 120,000 will be subject to a 20 percent tax in the annual slab of Rs 120,000 to 160,000.
A set tax of Rs 170,000 would be applied to income between Rs 1.6 million and Rs 3.2 million annually, according to the document. In a similar vein, income over Rs 1.6 million in the Rs 1.6 million to Rs 3.2 million yearly slab will be subject to 30% tax, while income between Rs 3.2 million and Rs 5.6 million will be subject to a fixed tax of Rs 650,000.
It states that income over Rs 3.2 million in the Rs 3.2 million to Rs 5.6 million annual slab will be subject to a 40% tax, agricultural income between Rs 4.0 million and Rs 5.6 million will be subject to a tax of Rs 1.6 million and Rs 1.6 million annually, and income over Rs 5.6 million annually will be subject to a 45% tax.