The International Monetary Fund (IMF) has set a target for Pakistan to expand its tax base by increasing taxation on agricultural income, with provincial governments expected to play a key role in implementation.
Agriculture remains one of the least-taxed sectors in the country, and its inclusion in the tax net is seen as a step toward improving fiscal revenues.
According to Topline Securities, the move is expected to face resistance from the farming community due to concerns over rising input costs and already strained profits.
At the same time, the federal government has introduced targeted relief measures for small farmers through the Pakistan Asaan Khidmat App.
Under this initiative, farmers owning less than 12 acres of land are eligible for a subsidy of Rs. 1,500 per acre to offset the impact of economic pressures and energy-related cost adjustments.
Such subsidy programs may continue or expand depending on fiscal space to support small-scale farmers and maintain agricultural productivity.
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