Sindh cabinet okays Agricultural Income Tax Bill 2025 on IMF terms
Sindh Cabinet has approved the Sindh Agricultural Income Tax Bill 2025, which will come into effect from January 2025. The new tax framework, however, excludes the livestock sector from its ambit.
Sindh Chief Minister chaired cabinet meeting that determined that the Sindh Revenue Board (SRB)—instead of the Board of Revenue—will be responsible for collecting the agricultural income tax.
Additionally, the cabinet has set a minimum agricultural income tax at 1% and a maximum at 10%. It has also introduced penalties for those who conceal cultivated land and agreed to allow adjustments in case of natural disasters affecting agricultural production.
During the meeting, the Sindh Chief Minister expressed concerns over the federal government’s approach, stating that Islamabad should have consulted Sindh before engaging with the International Monetary Fund (IMF) on economic policies.
The implementation of the agricultural tax is expected to impact prices of essential commodities such as vegetables, wheat, and rice. However, the Sindh Cabinet justified the move in the national interest, emphasizing the need for economic reforms and revenue generation.
