KARACHI: The Sindh cabinet has approved the Agriculture Income Tax Bill 2025, aligning with an International Monetary Fund (IMF) requirement. The decision was made during a cabinet meeting chaired by Chief Minister Murad Ali Shah, with the new tax coming into effect from January 2025.
Under the bill, agricultural income up to Rs150 million will remain tax-free, while earnings exceeding this threshold will be taxed at progressively higher rates.
Income between Rs150 million and Rs200 million will be taxed at 1%, gradually increasing to 10% for amounts above Rs500 million. Small agricultural companies will be taxed at 20%, while larger firms will face a 28% tax rate.
The Sindh Revenue Board (SRB) has been tasked with collecting the tax, and the bill includes provisions for adjustments in case of natural disasters.
Additionally, penalties will be imposed on individuals attempting to conceal cultivated land. Livestock income has been excluded from taxation.
During the cabinet meeting, concerns were raised that the new tax could drive up the prices of vegetables, wheat, and rice.
CM Murad Ali Shah criticized the federal government for not consulting Sindh before discussing taxation matters with the IMF. However, he stated that despite reservations, the tax was introduced in the broader national interest.
