Agricultural income tax bill set to be tabled in Sindh Assembly today

KARACHI: All is set to tax the agricultural income in Sindh following its implementation in Punjab and Khyber Pakhtunkhwa.

The draft of the Sindh Agricultural Income Tax Law will be presented in the Sindh Assembly today (Monday) after its approval by the provincial cabinet.

The name of the law regarding the imposition of tax on agricultural income in Sindh will be the Sindh Agricultural Income Tax Act 2025.

According to a document obtained by Geo News, agricultural income up to Rs600,000 a year won’t be taxable, while income above Rs600,000 up to Rs1.2 million would be taxed at 15 percent.

According to the document, a fixed tax of Rs90,000 has been proposed for incomes above Rs1.2 million to Rs1.6 million, while a 20 percent agricultural tax has been proposed for incomes above Rs12 million.

A fixed tax of Rs1.17 lakh will be imposed on income between Rs1.6 million and Rs3.2 million and 30 percent tax on income above Rs1.2 lakh.

Similarly, income from Rs3.2 million to Rs5.6 million will attract a tax of Rs650,000, while income above Rs3.2 million will attract a tax of 40 percent on agricultural tax.

According to the draft, income up to Rs5.6 million will attract a tax of Rs1.61 million, and for income exceeding Rs5.6 million, an agricultural tax of 45 percent will have to be paid on the additional income.

Under the law, super tax will also be imposed. There will be no super tax on agricultural income up to Rs150 million, but one percent super tax will have to be paid on agricultural income exceeding Rs200 million.

Along with income, the super tax rate will also increase. A 10 percent super tax has been proposed on annual agricultural income of more than Rs500 million.

Sources say the draft of the Sindh Agricultural Income Tax Law will be presented in the Sindh Assembly on Monday (today) after approval from the Sindh cabinet.