Agricultural income tax - an end of controversy.

At last, the long-standing controversy on agricultural income tax has come to an end. This paper seeks to highlight such controversy by pinpointing arguments for and against agricultural tax. Finally, the decisions of the caretaker regime and the present government following the recommendations of recently formed task force on agriculture with regard to agricultural income tax are discussed.

Backdrop

Pakistan inherited agriculture outside the purview of income tax. Agriculture sector is characterised by backwardness in Pakistan like other developing countries wher