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Thursday November 21, 2024

Agriculture tax

October 07, 2019

This refers to the story, ‘Federal government should collect agriculture tax: Farogh’ (Sep 23). Ideally, this is a good proposition put forth by the worthy law minister but can we honestly expect a government facing an upward spike in domestic public pressure to be able to impose agriculture tax (AT) in the best national interests? Perhaps not so under the present assembly’s tenure. Also, agriculture maps a vast area of this country’s economic activity (direct and indirect) to the tune of 80 percent, therefore, it is extremely important to conduct a meaningful and far-reaching debate on this issue before reaching a decision.

I think the FBR needs to further consolidate its success and achievements in the years ahead and perhaps advise the government to develop a viable roadmap (after deliberations with the provincial stakeholders and the farmers lobby) so that an AT implementation schedule could be developed for presentation in the next assembly. It’s quite a complex issue; the proposed taxation rate should commence on the lower side and gradually be enhanced as the nation’s farming sector begins to boom. Also, farming incomes fluctuate across provinces, regions, and crops which is why it is impractical to apply a uniform rate. A strong, successful, visionary federal government would be in the best position to tackle the issue of agricultural tax imposition. A half-baked measure could be chaotic and lead to a U-turn. On the other hand, successful imposition of AT could deliver immense prosperity to the country besides rendering accurate data of this vital sector for our statisticians and planners to undertake analysis, forecasting, and planning for the future.

Abbas R Siddiqi

Lahore