Pakistan imposes agricultural tax rates between 15% and 45%, exceeding those in India, Bangladesh, and Sri Lanka. Additionally, a 10% super tax on high-income landowners has been introduced as part of IMF requirements.
The Institute of Cost and Management Accountants of Pakistan (ICMA) has pointed out major enforcement challenges, including outdated land records and unstable farm incomes. The tax burden could lead to higher production costs and inflation, particularly affecting small farmers.
To improve compliance, ICMA suggests a gradual implementation, beginning with large landowners, alongside land record modernization and digital tax collection enhancements.
