ISLAMABAD - The Pakistan Economy Watch (PEW) on Sunday questioned government claims about agriculture tax fearing that this tax would not be imposed during the PML-N rule. It is highly unlikely that the incumbent government would tax agricultural income of absentee landlords to put economy on tract and end dependence on loans and grants, it said.
The top officials of the federal government say that provinces are not willing to tax landholders while ignoring the fact that their own party is ruling Punjab since seven years, said Dr Murtaza Mughal, President PEW.
He said that Punjab government has not moved an inch to tax income of landed gentry which has put a big question mark on their claims of good governance.  This attitude of rulers have destabilised entire tax system forcing FBR to milk salaried class and industrial sector which has choked growth and forced country to remain dependent on international financial institutions.  Mughal said that the prices of food items have been rising since years adding to the profits of agriculturists but government continue to provide them a free ride while tightening noose against poor to reduce deficit.