Chamber of agriculture rejects 45 per cent farm tax

HYDERABAD: The Sindh Chamber of Agriculture on Tuesday rejected the federal government’s decision to impose a 45 per cent agricultural income tax, declaring it unconstitutional and illegal.

In a meeting held in Hyderabad, chaired by Chief Patron and Central President Professor Dr Syed Nadeem Qamar, the chamber announced its intent to challenge the tax in court. It also called on farmers across Sindh to boycott wheat cultivation for the upcoming 2025–2026 season.

Growers from across the province attended the meeting, voicing anger over the tax, which they claimed was imposed under pressure from the International Monetary Fund (IMF). They argued that farmers were already struggling due to low crop prices and that imposing such a steep tax would further cripple the agricultural sector. The chamber warned that farmers would refuse to pay the tax and that millions were prepared to face imprisonment rather than comply.

Citing the government’s failure to offer reasonable support prices for wheat, the chamber advised growers to switch to alternative crops such as mustard, kalonji (nigella), sunflower, and other oilseeds, which they said offer better economic returns.

Concerns were also raised over the declining cotton production in Sindh. Farmers pointed out that the current market price for cotton was around Rs. 6,500 per maund, far below the government’s promised rate of Rs. 11,000.

They demanded the removal of the 18 per cent local tax on cotton and the imposition of a 25 per cent duty on imported cotton to protect local producers. The meeting also highlighted the rising cost of agricultural inputs. In the past 15 days alone, diesel prices had surged by Rs. 22 per liter, while DAP fertilizer had increased by Rs. 600 per bag. Farmers said these escalating costs were severely damaging the agricultural economy, and they urged the government to immediately reduce prices of diesel, fertilisers, seeds, and pesticides.