ISLAMABAD: The Pakistani government is considering imposing income tax on farmers as part of efforts to meet International Monetary Fund requirements and achieve targets for agricultural income tax collection, according to government sources.
Sources said the federal government has begun preparing an alternative strategy in consultation with the provinces to ensure that agreed agricultural tax collection targets are met.
The move comes as Pakistan seeks to fulfill commitments under its IMF program and improve revenue collection from the agricultural sector.
According to sources, the government is expected to give provincial authorities until Sept. 30, 2026, to meet targets related to agricultural income tax collection and the filing of tax returns.
The federal and provincial governments are expected to coordinate on the implementation of the agricultural income tax framework as Islamabad works to satisfy the IMF’s revenue-related requirements.
Officials have not yet disclosed details of the proposed tax structure or how the potential measures would affect farmers across different income and agricultural categories.