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Sindh Cabinet approves agriculture income tax with reservations

Sindh Cabinet approves agriculture income tax with reservations

Sindh Cabinet approves agriculture income tax with reservations

Sindh Cabinet approves agriculture income tax with reservations

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KARACHI: The Sindh cabinet has approved agriculture income tax bill 2025  with reservations and this will be implemented from January 2025.

Sindh Cabinet approved the Agriculture Income Tax law during its meeting, proposing that agricultural income up to Rs. 600,000 annually will be exempt from tax, while the maximum tax rate for income exceeding Rs. 5.6 million annually will be 45 per cent.

Sindh Chief Minister Syed Murad Ali Shah said a progressive super tax has also been introduced, with no super tax on annual agricultural income up to Rs. 150 million and a maximum of 10 per cent super tax applying to income exceeding Rs. 500 million annually.

New Agricultural Income Tax In line with the commitments outlined in the National Fiscal Pact between the provinces and the Federal Government, the Sindh Cabinet has approved the Sindh Agricultural Income Tax Law, setting the stage for its introduction in the Sindh Assembly. This progressive legislation aims to strengthen the province’s tax collection framework and enhance fiscal responsibility within the agricultural sector.

Under this new law, the Sindh Revenue Board (SRB) will be the authority responsible for collecting and enforcing the agricultural income tax, ensuring a streamlined and efficient process. The proposed Sindh Agricultural Income Tax Bill 2025 is set to take effect on January 1, 2025.

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The Bill states that agricultural income up to Rs. 600,000 annually will be exempt from tax, while the maximum tax rate for income exceeding Rs. 5.6 million annually will be 45 per cent.

A progressive super tax has also been introduced: there will be no super tax on annual agricultural income up to Rs 150 million, while a maximum super tax of 10 per cent will apply to income exceeding Rs  500 million annually.

Additionally, the Bill aims to include corporate farming in the tax net. Small companies will be subject to a 20 per cent tax rate on their annual agricultural income, while large companies will face a tax rate of 29 per cent.

Notably, livestock has not been included in the tax net, and the advance agricultural income tax, based on land cultivation, will no longer be levied. The payment, collection, and filing of agricultural income tax will be fully automated for greater efficiency.

 

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Sindh Cabinet set to approve Agriculture Income Tax tomorrow
Sindh Cabinet set to approve Agriculture Income Tax tomorrow

The Sindh Cabinet has scheduled a session for tomorrow (Monday) to approve...

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The Sindh cabinet said that imposing agriculture income tax would increase the prices of vegetables, while the members of the assembly also expressed concern that the taxation of agricultural tax would make wheat and other commodities expensive.

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