KARACHI – The Sindh Assembly on Monday approved the Agriculture Income Tax Bill 2025 to generate more revenue amid efforts to put the country’s economy on the track.
Speaking on the occasion, Sindh Chief Minister Murad Ali Shah said the provincial government had been told that the team of the International Monetary Fund (IMF) will not arrive if the bill for imposing tax on agriculture income is not passed.
After the bill was approved, the Sindh Revenue Board (SRB) has shared details of the tax to be imposed on agriculture income.
As per the bill, agricultural income up to Rs600,000 annually will be exempted from income tax. However, income ranging from Rs600,000 to Rs1.2 million will be taxed at 15%, while 30% percent tax will be collected on income between Rs1.6 million and Rs3.2 million annually, with a fixed collection of 170,000.
For income between Rs3.2 million and Rs5.6 million, the tax rate will be 40%, with a fixed collection of Rs650,000. For annual income exceeding Rs5.6 million, the tax rate will be 45%, with a fixed collection of Rs1.61 million.
Additionally, a 10% super tax will be applied on income exceeding Rs500 million, and a 1% super tax will apply on income exceeding Rs150 million.
According to the Sindh Revenue Board, small companies in corporate farming will be taxed at 20%, while large companies will face a 29% tax rate.
SRB authorities have stated that the tax collection and filing system will be automated.
