Karachi: The Sindh Cabinet has approved the Agriculture Income Tax Bill 2025, as per the IMF’s conditions, which will be implemented starting January 2025.
According to the spokesperson for the Sindh Chief Minister, livestock has not been included in the agriculture income tax by the provincial government.
Sindh Chief Minister Murad Ali Shah stated that the agriculture income tax will be collected by the Sindh Revenue Board instead of the Board of Revenue. Adjustments will be made to the tax in the event of natural disasters.
The spokesperson for the Sindh Chief Minister mentioned that penalties will be imposed for concealing cultivated land. Small companies will face a 20% agricultural tax, while large companies will be subject to a 28% tax. A 2% tax will be applied to agricultural income between 20 crore to 25 crore rupees, 3% for income between 25 crore to 30 crore rupees, and 4% for income between 30 crore to 35 crore rupees.
Under the Agriculture Income Tax Act, a 6% tax will be levied on agricultural income between 35 crore to 40 crore rupees, 8% for income between 40 crore to 50 crore rupees, and 10% for agricultural income exceeding 50 crore rupees.
Sources indicate that no tax will be applied to annual agricultural income up to 6 lakh rupees. Income between 6 lakh to 12 lakh rupees will be taxed at 15%, while a super tax will be imposed on landowners with higher incomes.
The Sindh Cabinet stated that Sindh should have been consulted before discussions with the IMF. They warned that implementing the agriculture income tax could lead to increased prices of vegetables, wheat, rice, and other commodities.
Murad Ali Shah emphasized that the Sindh Cabinet approved the agricultural tax in the national interest and that he would engage in further discussions with the federal government.
