Sindh Approves Agriculture Income Tax Bill 2025

Sindh Chief Minister’s spokesperson says Agriculture Income Tax Bill will be enforced from January 2025

KARACHI: (UrduPoint/UrduPoint / Pakistan Point News-Feb 3^rd, 2025) The Sindh cabinet on Monday approved Agriculture Income Tax Bill 2025 amid reserves in order to meet conditions set by International Monetary Fund.

Sindh Chief Minister’s spokesperson said that the Agriculture Income Tax Bill would be enforced from January 2025.

He said that the provincial government did not include the livestock in the Agriculture Income Tax.

Sindh CM Murad Ali Shah mentioned that the Agriculture Income Tax would be collected by the Sindh Revenue board instead of the Board of Revenue, and adjustments will be made in the tax in case of natural disasters.

The spokesperson also clarified that a penalty would be imposed in case of concealing irrigated land. A 20% agricultural tax would be applied to small companies while the large companies would face a 28% tax.

For agricultural income between Rs200 million to Rs250 million, a 2% tax would be levied; for income between Rs250 million to Rs300 million, a 3% tax would apply; and for agricultural income between Rs300 million to Rs350 million, a 4% tax will be charged.

According to the Agriculture Income Tax Act, agricultural income between Rs350 million and Rs400 million would be taxed at 6%, income between Rs400 million and Rs500 million would face an 8% tax while income exceeding Rs500 million would be taxed at 10%.

The sources said that no tax would be levied on agricultural income up to Rs600,000 annually while income between Rs600,000 and Rs1.2 million would be taxed at 15%.

Additionally, a super tax would be imposed on landowners with higher incomes.

The imposition of agricultural tax is expected to increase the prices of vegetables while the Sindh Cabinet expressed concerns about this.

During a meeting chaired by Chief Minister Murad Ali Shah, cabinet members stated that Sindh should have been consulted before discussions with the IMF. Chief Minister Murad Ali Shah emphasized that the Sindh Cabinet has approved the agricultural tax in the national interest and that he would discuss the matter again with the Federal government.

The Sindh Cabinet members also raised concerns that the introduction of the agricultural income tax could lead to higher prices for wheat and other crops, in addition to vegetables.