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Sindh Cabinet approves Agri Income Tax Bill, but warns of price spiralBreaking

February 03, 2025

Tough times for the Sindh farmers indeed as the provincial cabinet, which met with Chief Minister Syed Murad Ali Shah in the chair on Monday, approved the Agriculture Income Tax Bill, 2025 under which new taxes would be levied on the income of farmers, leading to fears that the prices of wheat, vegetables and rice would go up further. Giving a clarification, the chief minister said that the bill would not apply to the livestock sector.  Sources told 24News TV channel that the Sindh Revenue Board, and not the Board of Revenue, would collect these taxes. Similarly, they added, adjustments would be made in the event of any loss caused to crops by a natural disaster, while the farmers concealing their agricultural lands would also be fined.  Sources informed that 20 per cent tax would be levied on small companies, while 28 per cent on big ones. 

If the agricultural income would be between Rs150 million and Rs200 million, one per cent tax would be levied; two per cent tax if the income is between Rs200 million and Rs250 million; three per cent tax if the income was between Rs250 million and Rs300 million; four per cent tax if the income was between Rs300 million and Rs350 million; six per cent tax if the income was between Rs350 million and Rs400 million; eight per cent tax if the income was between Rs400 million and Rs500 million and 10 per cent tax if the income exceeded Rs500 million, sources elaborated.   Although the provincial cabinet admitted that new taxes would lead to a raise in the prices of vegetable, rice and wheat, still, it said it was approving them in the country’s interest.  CM Murad said that the Center ought to have taken the Sindh government on board prior to talks with the IMF. He hinted at again taking up the issue with the federal government.

Credit: Independent News Pakistan (INP)