Thaindian News

Islamabad, April 8 (IANS) The Pakistan government has concurred with economic experts to tax farm income, a media report said Friday.

The government Thursday accepted the advice of economic advisers to tax the supply chain of the agriculture sector and to ask the provinces to send notices to people having over 50 acres of land to file tax returns for additional revenue mobilisation, Dawn reported.

This was decided at the first meeting of the Economic Advisory Council (EAC) that comprises former finance minister Shaukat Tarin, former industries minister Jehangir Khan Tarin, former State Bank governor Salim Raza and other experts. Finance Minister Abdul Hafeez Shaikh presided over the meeting.

The council discussed the idea of taxing all incomes irrespective of the source of origin, including agriculture and services sectors, said a finance ministry statement.

The experts at the meeting suggested that notices should be issued to big landholders to file tax returns to show the government’s resolve for introducing an equitable tax system.

The participants opined that agricultural value chain like wholesalers and middlemen was in the federal domain and it should be taxed by the central government.

The panel members stated that they would keep away from future meetings if their recommendations were not made part of the next budget.

“We have come together to try to sort out economic difficulties and will defend the budget if our consensus recommendations are adopted,” a participant was quoted as telling the finance minister.

The experts were of the opinion that the next budget should be “growth-oriented” and aim at increasing revenues, and not just look at meeting the requirements of the International Monetary Fund.

Another member said that the country has to achieve a growth rate of at least eight percent of GDP to provide jobs to the increasing number of young people.