In compliance with the International Monetary Fund’s (IMF) directive, the Sindh cabinet, under the leadership of Chief Minister Murad Ali Shah, approved the Agriculture Income Tax Bill 2025 on Monday.
Set to take effect in January 2025, the bill delivers the Sindh Revenue Board (SRB) with tax collection duties, while discharging livestock from taxation.
The bill introduces a progressive tax system, offering exemptions on agricultural income up to Rs150 million. Income between Rs150 million and Rs200 million will be taxed at 1%, while income exceeding Rs500 million will face a 10% tax rate. Small companies will be taxed at 20%, and large companies will incur a 28% tax rate.
The bill also includes penalties for the suppression of cultivated land, along with tax adjustments in the event of natural disasters.
Concerns were raised regarding potential price increases in essential commodities such as vegetables, wheat, and rice. While CM Murad Ali Shah voiced dissatisfaction over the federal government’s lack of consultation with Sindh before discussing tax policies with the IMF, he emphasized that the decision was made in the national interest.
