Sindh demands postponement of agriculture tax as NEC approves targets

ISLAMABAD: The National Economic Council (NEC) has approved the economic targets and development plan for the upcoming fiscal year, while the Sindh government has demanded a postponement of the tax on agricultural income.

According to sources, the NEC meeting was chaired by Prime Minister Shehbaz Sharif. During the meeting, the council approved both the economic goals and the development plan for the next fiscal year.

Chief ministers of all four provinces, senior officials from the ministry of finance, and representatives from other ministries attended the session.

During the meeting, the Sindh government called for delaying the imposition of the agricultural income tax — set to take effect from July 1 — and also urged an increase in the development budget. The province argued that taxing agricultural income could disrupt the system.

Also read: Rs17.5tr budget finalised; big chunk to go to debt servicing, defence, subsidies

However, the finance ministry team clarified that the decision to impose the agricultural income tax cannot be reversed due to commitments made with the International Monetary Fund (IMF). The tax will be implemented across all four provinces starting July 1.

For the next fiscal year, a total national development budget of Rs4.083 trillion has been proposed.

Prior to the meeting, Prime Minister Shehbaz Sharif also held discussions with the chief ministers of all four provinces.

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