The theory and practice of agricultural income tax in Pakistan and a viable solution

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. (...) 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. (Pak Dev Rev/DÜI)