Pakistan

Sindh CM Rejects Blame for IMF Program Ending, Criticizes Federal Tax Policies

The agricultural tax has been in place for 20 years, but the results have been minimal.

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has expressed his concerns over the federal government’s handling of agricultural tax and the IMF program, stating that the Pakistan Peoples Party (PPP) does not want to be the reason for the end of the IMF agreement.

Speaking in the Sindh Assembly, Murad Ali Shah emphasized that the provincial government’s stance on the agricultural tax bill should be considered, noting the failure of both the Federal Board of Revenue (FBR) and provincial revenue departments. He criticized the FBR for being a hub of corruption and failing to properly implement taxes, particularly in the agricultural sector.

“The agricultural tax has been in place for 20 years, but the results have been minimal. FBR has tried to cover up its failures by claiming that the agriculture sector doesn’t pay taxes. Meanwhile, they have suggested to the IMF that a tax be imposed on agriculture,” Shah said.

The Chief Minister further stated that the provinces should collect agricultural taxes themselves, adding that the Sindh government would also prefer to collect sales tax at the provincial level, instead of the FBR, which has struggled with this responsibility.

Shah also addressed concerns regarding the IMF, noting that the global financial institution had suggested implementing an agricultural tax last year. However, the IMF mission scheduled for January was canceled, which could lead to the collapse of Pakistan’s IMF program and negatively impact the country’s economy.

He acknowledged the economic progress in Pakistan, highlighting that inflation had decreased and the interest rate had fallen from 22% to 12%.

He also pointed out that Punjab and Khyber Pakhtunkhwa had already passed laws imposing taxes on agriculture, but clarified that PPP does not want the IMF program to end due to any disagreements over the tax law. Shah argued that improvements could have been made to the agricultural tax law, but the federal government had mishandled the situation.

Read More: Sewerage Treatment plant would be initiated for Rs135 Bn: Murad Ali Shah

Shah criticized the federal government for its treatment of the provinces, saying, “We are supporting the federal government in standing on its feet, but we are not part of it. The federal government should not treat provinces in this manner.”

On the topic of rivers and dams, Shah mentioned that the construction of dams had rendered thousands of acres of agricultural land barren, further exacerbating the challenges faced by farmers in Sindh.

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker