The Sindh government has officially approved the Agricultural Income Tax Bill 2025, which is set to take effect in January 2025. The bill introduces a structured taxation system on agricultural income, with various tax slabs based on income levels.
Key Features of Sindh Agricultural Income Tax
- Livestock Exemption: The provincial government has exempted the livestock sector from the agricultural income tax.
- Collection Authority Shift: The Sindh Revenue Board (SRB) will now handle tax collection, replacing the Board of Revenue (BOR).
- Disaster Adjustments: Tax adjustments will be implemented in the event of natural disasters.
- Penalties for Concealment: Fines will be imposed on individuals who hide cultivated land to evade taxation.
Sindh Agricultural Income Tax Slabs 2025
The newly approved tax slabs for agricultural income are as follows:
- 1% on income between Rs150 million and Rs200 million
- 2% on income between Rs200 million and Rs250 million
- 3% on income between Rs250 million and Rs300 million
- 4% on income between Rs300 million and Rs350 million
- 6% on income between Rs350 million and Rs400 million
- 8% on income between Rs400 million and Rs500 million
- 10% on income exceeding Rs500 million
Tax Rates for Companies
- Small companies will be taxed at 20%.
- Large companies will be taxed at 28%.
Concerns Over IMF Negotiations
During the Sindh cabinet meeting, concerns were raised about the lack of consultation before negotiations with the International Monetary Fund (IMF). The provincial authorities emphasized the need for greater transparency in financial policymaking.
Implementation and Compliance
The implementation of the Agricultural Income Tax Bill 2025 marks a significant shift in Sindh’s taxation policies. The Sindh Revenue Board (SRB) will oversee compliance, ensuring that agricultural income is properly taxed while providing relief measures in case of unforeseen circumstances.
For farmers and agribusinesses, understanding the new tax structure is essential to ensure compliance and avoid penalties. The government has assured stakeholders that the tax framework will be implemented gradually and fairly.
