VIII. Academic Studies Congress | Andizhan, Uzbekistan

Agricultural Income Tax Compliance in Pakistan: Insights from Punjab's Diverse Farming Communities

Not scheduled

20m

Speaker

Dr Sami Ullah (MNS University of Agriculture, Multan Pakistan)

Description

This study aims to identify the determinants of farmers' tax compliance behavior regarding agricultural taxation in Punjab, Pakistan. However, Pakistan lags far behind in taxing individual income, especially agricultural income. Various factors contribute to the poor collection of agricultural income tax, including poor administrative structure and farmer compliance behavior. The primary data are collected through a cluster sampling technique from 557 farmers through a well-structured questionnaire from farmers in Punjab. Four districts from Punjab, namely Lodhran, Toba Tek Singh, Bhakkar, and Nankana Sahib are selected where tenants (25%), own-cum tenants (25%), own-cropper farmers (50%), and absentee landlords (relevant) are selected for interview. A logit regression model is used to examine the determinants of farmer’s tax compliance behavior in Punjab. The study's finding shows that education, tax knowledge, satisfied tax authorities, tax contribution to society and agriculture, and social benefits have statistically positive effects on tax compliance. On the other hand, government waste taxes and poor agriculture services have statistically negative effects on tax compliance. However, these findings also highlight the potential for improving tax compliance rates, providing hope and optimism. Moreover, tax authorities should take steps to improve tax compliance rates.