ISLAMABAD: Former finance minister Dr Hafeez Pasha has said that Pakistan’s provincial governments are ignoring the massive potential of agricultural income tax, which could yield Rs 450-500 billion annually, against Punjab’s meagre Rs 10 billion collection target — a figure he termed “too low and embarrassing.”
Speaking on Aaj TV’s talk show Paisa Bolta Hai with Anjum Ibrahim on Sunday, Dr Pasha said all four provinces have amended their agricultural income tax laws in line with commitments made to the International Monetary Fund (IMF), but the collection targets remain disproportionately low.
“If we collect a very reasonable amount of tax from big landlords and agriculturists, the government can mobilize Rs 450-500 billion. At least the one percent of farmers who own 22 percent of farmland should be taxed properly,” he stressed.
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Turning to other tax measures, Dr Pasha criticised the government’s failure to implement the Tajir Dost Scheme, which was projected to raise Rs 50 billion from traders. “The government tried to introduce an effective scheme, but it collapsed before implementation,” he said.
On the capital market, he questioned the recent bullish run of the Pakistan Stock Exchange (PSX). “Why is the market going up when foreign investors are unwilling to invest? Last year, portfolio investment was a negative Rs 600 billion. The market is under the control of a few big players who can shift its direction at will,” he noted.
Dr Pasha warned that without serious reforms in agriculture taxation and trader documentation, the government will continue to fall short of its revenue potential, relying instead on regressive taxes that burden the poor.
Copyright Business Recorder, 2025
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