KP assembly approves Agricultural Income Tax Bill 2025
- By Web Desk -
- Jan 27, 2025
PESHAWAR: The Khyber Pakhtunkhwa (KP) Assembly has approved the Agricultural Income Tax Bill 2025, ARY News reported.
According to reports, the bill will be retroactively applied from January 1, 2025. Under the Agricultural Income Tax Bill 2025, any agricultural income exceeding Rs150 million annually will be subject to a super tax.
Additionally, the agricultural tax will be applicable to land with 50 acres or more of cultivated land or 100 acres or more of uncultivated land.
The Agricultural Income Tax Bill 2025 also divides agricultural land into three zones for taxation purposes.
In Zone One, land between 12.5 acres and 25 acres will be taxed at Rs1,200 per acre annually.
In Zone Two, land of the same size will be taxed at Rs900 per acre, while in Zone Three, the tax will be Rs500 per acre annually.
Furthermore, a 15 percent tax will be imposed on agricultural income between Rs6 million and Rs12 million annually, while a 20 percent tax will apply to annual agricultural income ranging from Rs12 million to Rs16 million.
Read More: KP govt to sack employees hired during caretaker tenure
Earlier, the KP government has decided to sack employees hired during the caretaker government’s tenure.
As per details, a bill, titled the Khyber Pakhtunkhwa Employees Bill 2025, has been drafted to facilitate the dismissals, which will affect employees hired between January 22, 2023, and February 29, 2024.
The proposed bill exempts employees hired through the commission, including those recruited under the children and minority quotas. A seven-member committee, headed by the Secretary Establishment, will be formed to oversee the process and address any obstacles that may arise during the terminations.
The committee’s decisions will be final, and all departments will be required to submit reports on the recruitments within 30 days. The bill aims to declare the caretaker government’s recruitments illegal and pave the way for the termination of affected employees.
This development comes after an inquiry exposed alleged 566 illegal posts created during the caretaker government’s tenure, resulting in an annual loss of PKR 480 million to the public exchequer.