Implementing agricultural and property taxes is of utmost importance.

Web DeskOctober 10, 20234362 min

In Islamabad, the World Bank has identified increasing taxes in the wealthier agricultural and property sectors as its top priority.

Tobias Haque, the lead economist of the World Bank for Pakistan, emphasized the need to withdraw tax exemptions, particularly in the sales tax domain. Haque stated that by fully utilizing the potential of agriculture and property sectors, Pakistan could generate revenues equivalent to 3% of its GDP, amounting to over Rs3 trillion.

The World Bank proposed measures such as harmonizing valuation systems, raising property tax rates, and modifying land classification for taxation to collect 2% of GDP from land and real estate.

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While the bank clarified that it does not recommend taxing individuals earning below Rs50,000 per month, it stressed the necessity of conducting updated surveys to determine new tax-free income levels.

Pakistan’s current tax system heavily burdens a small fraction of taxpayers, with a minute percentage contributing significantly to the country’s income tax collection.

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