The Sindh Cabinet has approved the Agricultural Income Tax Bill 2025, introducing a progressive tax structure for the agricultural sector. Under the new law, agricultural income up to Rs. 600,000 annually will be exempt, while income exceeding Rs. 5.6 million will be subject to a maximum tax rate of 45 percent.

Additionally, a super tax has been introduced, with no super tax on income up to Rs. 150 million, and a maximum of 10 percent applied to earnings above Rs. 500 million.

Chaired by Sindh Chief Minister Syed Murad Ali Shah, the cabinet meeting was attended by key government officials, including provincial ministers and advisors.

The law aligns with the National Fiscal Pact between provinces and the federal government, aiming to enhance tax collection and fiscal responsibility within the agricultural sector. The Sindh Revenue Board (SRB) will oversee the tax collection and enforcement process, ensuring efficiency and transparency.

A key feature of the bill is the inclusion of corporate farming in the tax net. Small agricultural companies will face a 20 percent tax rate, while larger corporations will be taxed at 29 percent. However, livestock remains exempt from taxation, and the advance agricultural income tax on land cultivation has been removed. The payment and filing system for the tax will be fully automated to improve efficiency.

The Sindh government also reviewed its share in the National Finance Commission (NFC) Award, confirming that it had received Rs. 3,002.43 billion over the past three years, with a shortfall of Rs. 77.16 billion recently compensated by the federal government. Furthermore, the province received Rs. 1,325.35 billion under Straight Transfers, with a deficit of Rs. 126.64 billion, which has also been addressed.

To modernize governance, the Sindh government has launched a Cabinet E-Portal, following the federal government’s digitization initiatives. The system will provide ministers with iPads, digital access to cabinet documents, and real-time notifications, promoting paperless and efficient governance.