KP govt tables bill to impose tax on agri income

PESHAWAR: The provincial government on Friday tabled a bill in the Khyber Pakhtunkhwa Assembly to impose tax on income from agricultural produce.

Alongside this, the government tabled six additional bills, including proposed legislation to terminate 16,000 employees hired during the last caretaker setup and establish a regulatory force on the pattern of the police.

Law Minister Aftab Alam presented the Khyber Pakhtunkhwa Agricultural Income Tax Bill 2025 in the assembly.

According to the proposed tax structure, 15 percent tax will be imposed on annual agricultural income of Rs6-12 lakh, 20 percent tax on income of Rs 12-16 lakh, 30 percent on Income of Rs16-32 lakh, 30 percent tax on income of Rs32-56 lakh, 40 percent tax on income exceeding Rs56 lakh. Super tax will be imposed on landowners earning more than Rs150 million annually.

Those owning land across multiple patwar circles must provide location details and submit tax returns. Additionally, agricultural tax will be imposed on 50 acres of cultivated land or 100 acres of uncultivated land. Corporate farming with small companies will be taxed at 20 percent and larger entities at 29 percent Failure to pay the tax without valid justification will result in a daily penalty of 0.1 percent. The Revenue Board will create zonal systems for tax collection, and agricultural lands will be classified into three zones with per-acre taxes ranging from Rs500 to Rs1,200.

The government also presented the KP Employees Termination Bill 2025 to dismiss 16,000 employees hired unlawfully during the caretaker government.

A six-member committee, led by the secretary Establishment and including the Advocate General and representatives from legal, finance, and administrative departments, will oversee the termination process. Once approved, the bill mandates relevant departments to issue termination notifications.

The assembly also discussed the KP Regulatory Force Bill 2025 aimed at enforcing regulations across various sectors, including environmental protection, food safety, and price control. Modeled after the police, the force will have powers, including arrest, property seizure, and investigation. The force’s headquarters will be based in Peshawar, with units established in every district and regulatory police stations set up across the province.