Finance Minister Muhammad Aurangzeb has expressed dissatisfaction over delays by Sindh, Khyber Pakhtunkhwa, and Balochistan in passing new agriculture income tax laws, a key condition under the $7 billion Extended Fund Facility agreed with the International Monetary Fund (IMF).
During the National Tax Council (NTC) meeting, held after an 18-month hiatus, the minister emphasized the urgency of legislative progress and directed the finance ministry to convene quarterly meetings to monitor tax reforms.
As per sources, the KP government has approved the agriculture tax bill, but it has not yet been tabled in the provincial assembly. No updates were provided on Sindh or Balochistan cabinet approvals. Punjab remains the only province to have enacted the law.
The finance minister plans to raise the issue with Sindh Chief Minister Murad Ali Shah.
The Federal Board of Revenue (FBR) has agreed to share limited taxpayer information regarding agricultural income but is constrained by confidentiality laws from providing further details to provinces.
The National Tax Council also decided to propose amendments to Agriculture Income Tax legislation in provincial assemblies after failing to reach consensus on harmonizing goods and services tax (GST) rates and unifying property taxes under a single framework. The NTC set a deadline of January 1, 2025, to present a draft of the negative list for GST on services.
While the Federal Board of Revenue (FBR) reported progress in implementing unified GST returns for Cellular Mobile Operators (CMOs), input adjustments remain problematic, and a unified GST framework for the telecom sector is yet to be achieved.
Separately, the finance minister addressed the International Affordable, Green, and Resilient Housing Conference, stating that the government would not revert to direct lending for the housing sector. Instead, the government plans to develop incentive-based mechanisms to promote bank-led housing finance, making it accessible to the public.
Aurangzeb highlighted the dual challenges of population growth and climate change impacting the housing sector. He noted that Pakistan’s population growth rate of 2.5% has broad implications, including child stunting, poverty, low educational outcomes, and high rates of girls dropping out of school.
