Domestic Terms of Trade in Pakistan : Implications for Agricultural Pricing and Taxation Policies
In 2008 the Government of Pakistan
agreed with the International Monetary Fund (IMF) to
increase the tax/Gross Domestic Product (GDP) ratio by 3.5
percentage points over the medium term. This commitment has
rekindled the debate regarding the agricultural income tax.
Advocates of an agricultural income tax argue that the
sector remains protected by political interests, while
opponents to such a tax maintain that agriculture is already