ISLAMABAD: Pakistan has informed the International Monetary Fund (IMF) about the rate of income tax in the agricultural sector.
Policy negotiations are underway between Pakistan and the IMF, in which Pakistan has informed the money lender about legislation to impose tax on the condition of the IMF. It said that the provincial governments had passed legislation to increase the rate of agricultural income tax, while the tax rate had also been shared with the IMF.
According to documents, the rate of income tax on agricultural income has been kept at par with the corporate sector. No tax will be applied in the agricultural sector up to an income of Rs 6 lakh per year.
According to the documents, agricultural income from Rs 6 lakh to Rs 12 lakh per annum will be taxed at 15 per cent, agricultural income from Rs 12 lakh to Rs 16 lakh per annum will be taxed at 90,000 while income above Rs 12 lakh in the slab of Rs 12 to 16 lakh per annum will be taxed at 20 per cent.
Moreover, a Rs 170,000 fixed tax will be levied on income between Rs 16 lakh and Rs 32 lakh per annum, while 30% tax will be levied on income above Rs 16 lakh in the slab of Rs 16-32 lakh per annum, while Rs 650,000 will be fixed tax on income between Rs 32-56 lakh per annum.
Income above Rs 32 lakh in the slab of Rs 32-56 lakh per annum will be taxed at 40 per cent, agricultural income between Rs 40-56 lakh per annum will be taxed at Rs 16.10 lakh, while income above Rs 56 lakh per annum will be taxed at 45 per cent.
