Download ~ The Theory and Practice of Agricultural Income Tax in Pakistan and a Viable Solution (Fiscal AND MONETARY Issues) (Report) # by Pakistan Development Review ~ Book PDF Kindle ePub Free
eBook details
- Title: The Theory and Practice of Agricultural Income Tax in Pakistan and a Viable Solution (Fiscal AND MONETARY Issues) (Report)
- Author : Pakistan Development Review
- Release Date : January 22, 1999
- Genre: Economics,Books,Business & Personal Finance,
- Pages : * pages
- Size : 304 KB
Description
The present paper provides a theoretical and practical assessment of agricultural income tax policy in Pakistan with a view to finding a workable solution. It looks at the benefits of the policy in terms of revenue generation, resource-use efficiency and as a fair and just system of taxation. How would the system operate under Pakistan's conditions is discussed as a real test of the policy. Many conclusions of the paper are important. The paper has argued that agricultural income tax policy under Pakistan's conditions would generate falling overtime revenues, would be price and income inelastic, difficult to administer and liable to evasion by large farmers. In view of the pitfalls in agricultural income tax policy, a two-tier system of agricultural taxation, involving a proportional land tax and a uniform tax on marketed surplus is recommended. Devised in a proper manner, the two-tier system would be equitable, responsive to changes in income and inflation and easy to implement even with current administrative setup. A uniform rate structure of a tax on marketed output may prove to be progressive in its impact as the marketed surplus varies directly with farm size.