KARACHI – High-earning Farmers in Sindh braced for tax hike as Agricultural Income Tax Bill nears approval in provincial legislature of Pakistan southeastern region.

PPP led Sindh government is set to slap tax on agricultural income, which outlines different tax rates based on income brackets. Under draft law, agricultural income up to Rs6lac annually would remain tax-exempt while a 15pc tax rate is proposed for income between Rs6lac and Rs12lac.

Sindh Agricultural Income Tax Act 2025

For agricultural income between Rs12 lac and Rs16 lac, a 20pc tax would apply, while a 30pc tax is proposed for income ranging from Rs16lac to Rs32 lac.

The draft also introduces progressive tax rates for higher income levels, with 40% for income between Rs32 lac and Rs56 lac, and 45 for income exceeding Rs56 lac annually.

No super tax would be applied to agriculture income between Rs10 million and Rs150 million. However, a 1% super tax would be imposed on income between Rs150 million and Rs200 million, with rates increasing for higher incomes.

These include a 2% super tax for income between Rs200 million and Rs250 million, 3% for income from Rs250 million to Rs300 million, 4% for income from Rs300 million to Rs350 million, and 10% super tax for incomes exceeding Rs500 million annually.

How a Pakistani farmer of five acres can earn up to Rs50 million?