Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates
There is considerable diversity and variation in the land-based and agricultural income tax rates across the provinces in Pakistan. The annual land-based tax revenues from the cultivated land, including orchards, are estimated at Rs. 5 billion in Punjab, 2.5 billion in Sindh, one billion in KP, and...
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| Format: | Article |
| Language: | English |
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Institute of Business Administration
2022-12-01
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| Series: | Business Review |
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| Online Access: | https://ir.iba.edu.pk/businessreview/vol17/iss2/6/ |
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| author | Dr Abdul Salam |
| author_facet | Dr Abdul Salam |
| author_sort | Dr Abdul Salam |
| collection | DOAJ |
| description | There is considerable diversity and variation in the land-based and agricultural income tax rates across the provinces in Pakistan. The annual land-based tax revenues from the cultivated land, including orchards, are estimated at Rs. 5 billion in Punjab, 2.5 billion in Sindh, one billion in KP, and less than half a billion in Baluchistan. Based on the 2017-18 GDP estimates from crops, two sets of income tax revenues were estimated: one at the provincial rates and the other at the FBR tax rates for non-salaried persons. Tax revenues from crop income, at the current provincial rates, work out to Rs. 34 to 37 billion in Punjab, 7 to 8 billion in Sindh, 7 to 9 billion in KP, and 4 to 5 billion in Baluchistan. Revenue estimates at the FBR rates are Rs. 112 to 134 billion in Punjab, 25 to 30 billion in Sindh, 9 to 10 billion in KP and 21 to 24 billion in Baluchistan. These estimates are indicative of the revenue potential from taxation of crop incomes and need to be kept in perspective along with the cost of tax collection while designing policy instruments for taxing agricultural incomes. |
| first_indexed | 2024-04-09T23:20:11Z |
| format | Article |
| id | doaj.art-e4498a5957ac422ea37198722cecc6a9 |
| institution | Directory Open Access Journal |
| issn | 1990-6587 2788-9599 |
| language | English |
| last_indexed | 2024-04-09T23:20:11Z |
| publishDate | 2022-12-01 |
| publisher | Institute of Business Administration |
| record_format | Article |
| series | Business Review |
| spelling | doaj.art-e4498a5957ac422ea37198722cecc6a92023-03-22T03:49:23ZengInstitute of Business AdministrationBusiness Review1990-65872788-95992022-12-0117729210.54784/1990-6587.1457Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimatesDr Abdul Salam0Former Chairman, Agricultural Prices Commission, Government of Pakistan and Professor of Economics, Abdul Qadir Memorial Chair, State Bank of Pakistan There is considerable diversity and variation in the land-based and agricultural income tax rates across the provinces in Pakistan. The annual land-based tax revenues from the cultivated land, including orchards, are estimated at Rs. 5 billion in Punjab, 2.5 billion in Sindh, one billion in KP, and less than half a billion in Baluchistan. Based on the 2017-18 GDP estimates from crops, two sets of income tax revenues were estimated: one at the provincial rates and the other at the FBR tax rates for non-salaried persons. Tax revenues from crop income, at the current provincial rates, work out to Rs. 34 to 37 billion in Punjab, 7 to 8 billion in Sindh, 7 to 9 billion in KP, and 4 to 5 billion in Baluchistan. Revenue estimates at the FBR rates are Rs. 112 to 134 billion in Punjab, 25 to 30 billion in Sindh, 9 to 10 billion in KP and 21 to 24 billion in Baluchistan. These estimates are indicative of the revenue potential from taxation of crop incomes and need to be kept in perspective along with the cost of tax collection while designing policy instruments for taxing agricultural incomes.https://ir.iba.edu.pk/businessreview/vol17/iss2/6/agricultural income taxland-based taxcrop incomecultivated areatax revenueimplicit tax |
| spellingShingle | Dr Abdul Salam Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates Business Review agricultural income tax land-based tax crop income cultivated area tax revenue implicit tax |
| title | Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates |
| title_full | Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates |
| title_fullStr | Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates |
| title_full_unstemmed | Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates |
| title_short | Taxation of agricultural incomes in Pakistan: Conceptual issues, data challenges and empirical estimates |
| title_sort | taxation of agricultural incomes in pakistan conceptual issues data challenges and empirical estimates |
| topic | agricultural income tax land-based tax crop income cultivated area tax revenue implicit tax |
| url | https://ir.iba.edu.pk/businessreview/vol17/iss2/6/ |
| work_keys_str_mv | AT drabdulsalam taxationofagriculturalincomesinpakistanconceptualissuesdatachallengesandempiricalestimates |