The Sindh Agricultural Income Tax Bill 2025 has been approved by the Sindh Cabinet and will take effect in January 2025. However, the livestock industry is not covered by the new tax structure.
A cabinet meeting convened by the chief minister of Sindh decided that the Sindh Revenue Board (SRB), rather than the Board of Revenue, would be in charge of collecting agricultural income tax.
A minimum farm income tax of 1% and a maximum of 10% have also been established by the government. It has also introduced penalties for those who conceal cultivated land and agreed to allow adjustments in case of natural disasters affecting agricultural production.
The chief minister of Sindh voiced his disapproval of the federal government’s strategy at the meeting, saying that Islamabad ought to have engaged Sindh before discussing economic plans with the International Monetary Fund (IMF).
It is anticipated that the agricultural tax’s introduction will affect the cost of necessities including rice, wheat, and vegetables. The Sindh Cabinet, however, defended the action on the grounds of national interest, highlighting the necessity of revenue creation and economic reforms.
The Sindh Cabinet has decided to digitalize its proceedings to reduce paperwork and expenses. During a cabinet meeting chaired by Murad Ali Shah chief minister, it was approved that a dedicated mobile application will be developed for cabinet proceedings..com
Cabinet members will receive tablets with just the agendas, minutes, and debates from meetings as part of this program.
The tablet will be sent back to the General Administration Department in the event that a minister is transferred. Sindh Cabinet allocated Rs150 million for procuring the necessary equipment.
Additionally, the cabinet has approved a government-to-government supply contract for the Solar Home System project. The contract has been awarded to NRTC (National Radio & Telecommunication Corporation).
Those earning up to Rs150 million from agriculture will be exempt from the tax.
