KARACHI: The Sindh Cabinet has approved the Agriculture Income Tax Bill 2025. It will come into effect from January 2025.
According to Chief Minister Syed Murad Ali Shah, livestock is not included in this tax. The Sindh Revenue Board (SRB) will collect the tax instead of the Federal Board of Revenue (FBR).
In the meeting, the Chief Minister said that tax adjustments will be made in case of natural disasters. He warned that hiding cultivated land will result in fines.
Different tax rates have been set. Small companies will pay 20% tax, while large companies will pay 28%. Individuals earning up to Rs 150 million from agriculture will be exempt.
Read More: Sindh CM orders police, rangers to crackdown on robbery incidents in Karachi
For incomes between Rs 150 million and Rs 200 million, a 1% tax will apply. The tax will increase to 2% for incomes up to Rs 250 million, 3% for up to Rs 300 million, 4% for up to Rs 350 million, 6% for up to Rs 400 million, 8% for up to Rs 500 million, and 10% for incomes above Rs 500 million.
The Chief Minister emphasized that Sindh should be consulted before discussions with the federal government. He plans to raise the matter with the federal authorities again.
The cabinet acknowledged concerns about potential price hikes for vegetables and other crops. However, it approved the tax in the country’s interest.
