- October 18, 2024
- Posted by: Muhammad Shehzad
- Category: RBS News
Islamabad, October 2024: Finance Minister Mohammad Aurangzeb has revealed government plans to make the tax on agriculture income effective July 1, 2025.
Tax on Agriculture Reform Legislation
Traditionally, agricultural income has been exempt from tax rates in Pakistan; however, the government is in talks with provinces over the NFP to ensure uniform tax legislation.
Also Read: Non-filers denied property purchases under FBR’s new tax strategy.
Moreover, upon asking about the ongoing talks with China regarding energy debt reprofiling, the finance minister stated that discussions are progressing. Both sides expect to sign an MoU soon to continue the negotiations. The statement also clarifies the rumor that the agreement would be finalized during Chinese Prime Minister Li Qiang’s visit to Pakistan next week.
The minister previously said Pakistan had formally requested debt repayment for the energy sector due to high-capacity payments. These payments have caused unaffordable energy rates and an increase in circular debt.
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The debt reprofiling process now includes detailed talks with Chinese financial institutions and investors on a project-by-project basis. The main focus is to extend the repayment period by 10 years to ease the financial burden.
Stay connected with RBS for more updates on the tax on agriculture.