The Sindh cabinet approved the Agricultural Income Tax Bill 2025 on Monday. The bill is set to take effect in January 2025.
The provincial government has exempted the livestock sector from the agricultural income tax. Additionally, the Sindh Revenue Board (SRB) will now be responsible for collecting the tax, replacing the Board of Revenue (BOR).
To address potential challenges, the government said that tax adjustments would be made in the event of natural disasters. However, fines will be imposed on individuals who conceal cultivated land.
The Sindh cabinet also expressed concerns over the lack of consultation before negotiations with the International Monetary Fund (IMF).
Under the new tax structure, companies will be taxed at different rates based on their classification: small companies at 20% and large companies at 28%. For agricultural income, the following tax slabs will apply:
- 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
