Agriculture Tax in Pakistan

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  • Topic: Agriculture, Agricultural economics, Bank
  • Pages : 2 (394 words )
  • Download(s) : 100
  • Published : November 17, 2012
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QUESTION
Today Agriculture converted subsistence to commercializated level, being a student of economy is you favor or against the notion of “tax on agriculture” prove it with your argument?

ANSWER
Now a day’s Govt. of Pakistan take a steps about to collect more tax and they just do commercialized to their agriculture. They impose tax on their agriculture sector before that agriculture income was tax exempted. Before that there was no tax on this sector. Because Pakistan has more agriculture economy. Pakistan agriculture products are really famous in the word especially rice, cotton quality are really popular in international market. Land lord export their agriculture products more and they work hard more so in this way our country foreign reserves also increasing when tax will be impose so it will create negative impact on farmers. We all know how our country tax system is? It is really corrupt. A tax what have been collected from anyone that will not give rewards to public. People also not want to give tax.

Pakistan has almost 14 million foreign reserves and agriculture sector is a sector that play really important role in this. Because Pakistan has agricultural economy. Most of their earning comes from these products. If tax will come on this sector than definitely people will start to hide their income and they really do not want to give tax and they will do different type of corruption that will definitely create negative impact on foreign reserves.

Although State Bank of Pakistan is playing very vital role to develop agriculture sector. They are making different policies to give farmer interest free loan or minimum interest rate loan. Farmer is very happy with these policies and SBP force all commercial banks to make policies to farmer helps. Different banks hire an adviser in rural areas branch there is specially adviser department exist in which farmer come and if they have problem so they help and guide tham how they can increase their products...
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