The Sindh cabinet has approved the Agricultural Income Tax Bill 2025, which has come into effect from January.
The new tax law excludes livestock and shifts collection from the Board of Revenue (BoR) to the Sindh Revenue Board (SRB).
Sindh Chief Minister Murad Ali Shah stated that in case of natural disasters, tax adjustments would be made.
Landowners who conceal their cultivated land will face penalties, while small agricultural companies will be taxed at 20% and larger firms at 28%.
Under the bill, farmers earning up to Rs150 million annually will remain exempt.
Those earning between Rs150 million and Rs200 million will pay 1% tax, while higher income brackets will face rates up to 10% for earnings exceeding Rs500 million.
The Sindh cabinet noted that implementing the tax could lead to increased prices for vegetables, wheat, and rice.
Shah emphasised that the decision was made in the national interest, but said he would raise concerns with the federal government.
The chief minister also highlighted Sindh’s share in the NFC Award, noting that Punjab receives 51.74%, Sindh 24.55%, Khyber Pakhtunkhwa 14.62%, and Balochistan 9.09%.
He said Sindh received Rs498 billion in 2022, with Rs77 billion in outstanding payments now settled.
To reduce paperwork and costs, the Sindh government approved a digital system for cabinet proceedings.
Ministers will be given tablets to access agenda items and meeting records, which must be returned upon a change in office.
Additionally, the cabinet approved Rs150 million for new equipment and awarded a solar home system supply contract to the National Radio & Telecommunication Corporation (NRTC).
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