KARACHI: Sindh Revenue Board (SRB) has been designated as the authority responsible for the collection and enforcement of agricultural income tax, following the Sindh Provincial Cabinet’s approval of Agricultural Income Tax (AIT) Law.
According to the details, the Sindh Provincial Cabinet has approved a groundbreaking AIT Law, marking a significant reform in the province’s agricultural sector taxation. The legislation, aligned with the National Fiscal Pact between the Provinces and the Federal Government, is now ready for introduction in the Sindh Assembly.
The new law assigns the SRB as the primary authority for tax collection and enforcement, introducing a comprehensive framework that will take effect from January 1, 2025.
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Under the legislation, agricultural income up to Rs600,000 annually will remain tax-exempt, while income exceeding Rs5.6 million will face a maximum tax rate of 45%. A notable feature of the bill is the introduction of a progressive super tax structure.
Agricultural income up to Rs150 million will be exempt from super tax, while income above Rs500 million will be subject to a 10% super tax rate.
The legislation also addresses corporate farming, implementing a two-tier tax system: small companies will pay a 20% tax on annual agricultural income, while large companies face a 29% rate.
Copyright Business Recorder, 2025
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