IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Agricultural Income Taxation: Estimation of the Revenue Potential in Punjab

Listed author(s):
  • Anjum Nasim

    (Institute of Development and Alternative Strategies (IDEAS), Lahore)

Registered author(s):

    This paper attempts to quantify the potential income tax revenue from crop farming and land rental in Punjab, the province which accounts for over 65 percent of the production of most major crops in Pakistan. Our estimates suggest that in the tax year 2010, the tax revenue potential from crop farming and land rental from an agricultural income tax, at rates comparable with federal income tax, was Rs 55–75 billion. Using a more limited data set to project taxable income for the financial year 2012-13 and using the tax rates applicable under the Finance Act 2012, the tax potential for the tax year 2013 is estimated to be about Rs 30 billion. The paper concludes broadly that under the current income tax rates, the perception about the agricultural income tax potential is exaggerated, but the revenue potential is still very large relative to the actual tax collection by the provinces. Taxing this source of income at rates applicable to similar incomes in other sectors of the economy will not only supplement the finances of the provincial governments, but will also have an important symbolic value in terms of fairness and equity.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 51 (2012)
    Issue (Month): 4 ()
    Pages: 321-337

    in new window

    Handle: RePEc:pid:journl:v:51:y:2012:i:4:p:321-337
    Contact details of provider: Postal:
    P.O.Box 1091, Islamabad-44000

    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Dorosh, Paul & Valdés, Alberto, 1990. "Effects of exchange rate and trade policies on agriculture in Pakistan:," Research reports 84, International Food Policy Research Institute (IFPRI).
    2. Ahmad,Etisham & Stern,Nicholas, 1991. "The Theory and Practice of Tax Reform in Developing Countries," Cambridge Books, Cambridge University Press, number 9780521265638, May.
    3. Skinner, Jonathan, 1991. "Prospects for Agricultural Land Taxation in Developing Countries," World Bank Economic Review, World Bank Group, vol. 5(3), pages 493-511, September.
    4. Javed Hamid, 1973. "The Problem of Agricultural Taxation in West Pakistan and an Alternative Solution. A Comment," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 12(3), pages 311-314.
    5. Faiz Mohammad, 1987. "Agricultural Taxation in Pakistan Revisited," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 419-432.
    6. M. Ghaffar Chaudhry, 1999. "The Theory and Practice of Agricultural Income Tax in Pakistan and a Viable Solution," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 757-768.
    7. Mahmood Hasan Khan, 1978. "A Note on Estimates of Agricu,tural Income Tax in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 17(1), pages 89-98.
    8. M. Ghaffar Chaudhry & Nighat Naheed Kayani, 1991. "Implicit Taxation of Pakistan's Agriculture: An Analysis of the Commodity and Input Prices," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(3), pages 225-242.
    9. Umir Wahid & Sally Wallace, 2008. "Incidence of Taxes in Pakistan: Primer and Estimates," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0813, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Javed Hamid, 1970. "Suggested Approach to Agricultural Taxation Policy in West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 10(4), pages 422-447.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:51:y:2012:i:4:p:321-337. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.