The International Monetary Fund (IMF) has demanded increased tax collection from provinces and the imposition of an agriculture tax in Pakistan, as reported by Pakistan Talk Show on Sunday.
Official sources indicate that the IMF has highlighted the low tax contribution from the agriculture sector relative to its income share and is urging the government to implement taxes on agricultural income.
The IMF has also recommended using the National Tax Council to enhance provincial taxation. It pointed out that the provinces’ tax share in national revenues has remained minimal, at around one percent. Additionally, the IMF has called for full tax collection on properties and sales tax on services within the provinces.
In a previous demand, the IMF required Pakistan to make public the assets of office holders, government officials, ministers, and parliamentarians. The IMF has suggested implementing strict anti-corruption measures in the upcoming 2024 budget.
Under the agreement with the IMF, Pakistani authorities are obliged to create a portal to declare assets of public officials, a step the government has yet to complete. Despite having prepared a performa for asset disclosure, it has not been made public.
Furthermore, banks will now be required to obtain asset information from government officials when opening new accounts, ensuring greater transparency and accountability.