Sindh Assembly passes Agriculture Income Tax bill 2025

KARACHI: The Sindh Assembly on Monday passed the Agriculture Income Tax Bill 2025 after earlier the law was approved by the provincial cabinet chaired by Chief Minister Murad Ali Shah.

“We have been bluntly told that the IMF team will not arrive, and the country will default if the agriculture tax bill not passed into a law,” Sindh CM Murad Ali Shah, speaking at the floor of the house said.

“When you point out a wrong path to the IMF, they will stick with it,” chief minister said.

“They don’t know what the difference between a Hari (tiller) and a landholder is,” addressing the house Sindh CM said.

Chief Minister said that that the FBR has been a hotbed of corruption. “We are told that the Federal Board of Revenue (FBR) will collect this tax,” he said. “The FBR could not achieve its targets,” he said.

“The Sindh Revenue Board (SRB) will collect this tax,” Murad Ali Shah said.

The Agriculture Income Tax law will come into force from January 2025.

Earlier in Sindh cabinet session Sindh CM said that the provincial government has decided not to include livestock under the agriculture income tax.

The bill states that in the event of natural disasters, adjustments will be made to the agriculture income tax.

Furthermore, penalty will be imposed on individuals who attempt to conceal their cultivated land.

Agricultural income up to Rs150 million will be exempted from taxation, whereas income exceeding this threshold will be taxed progressively, starting at 1% for earnings between Rs150 million and Rs200 million, and reaching 10% for income above Rs500 million.

During the cabinet meeting, concerns were raised that the imposition of the agriculture income tax could lead to an increase in vegetable prices, as well as higher costs for essential grains such as wheat and rice.