KARACHI: The Sindh Assembly on Monday unanimously adopted a landmark agriculture taxation law.
However, the opposition equally supported the Sindh Agriculture Income Tax Bill 2025, with the treasury hoping the fresh imposition will help the province cope with the fiscal challenges. Sindh Chief Minister Syed Murad Ali Shah described the legislation after the federal government “cornered” Sindh.
He censured the Federal Board of Revenue (FBR) as a hub of corruption, adding that this law was introduced out of necessity to avoid affecting the agreement with the International Monetary Fund (IMF).
Agri tax collection from coming July: Aurangzeb
In line with the law, the listed companies in the agricultural sector will be taxed between 20 percent and 28 percent. It says that once the agricultural income exceeds Rs1.5 billion, a super tax will also apply. The Sindh Revenue Board will be responsible for collecting the agricultural tax.
During the proceedings, Sindh Parliamentary Affairs Minister, Zia Ul Hasan Lanjar presented the Sindh Agricultural Income Tax Bill under a supplementary agenda. He elaborated on the key points and objectives of the bill, stating that it was formulated based on an agreement between the federal and provincial governments.
Lanjar emphasised that certain commitments under the IMF program must be fulfilled. He noted that the Punjab Assembly had already passed the Agricultural Income Tax Bill, and implementing the Sindh Agricultural Income Tax Bill would help improve economic conditions.
In his address, Syed Murad Ali Shah claimed that the federal government had left them with no choice. He accused the FBR of corruption and said this law was introduced out of necessity to maintain the IMF agreement. He noted that the FBR had failed in many areas, whereas the Sindh Revenue Board (SRB) consistently met its targets.
The CM explained that agricultural tax has existed for 30 years, but the federal government insisted that the FBR should collect it. He argued that provincial governments have a share in federal taxes and accused the FBR of trying to cover up its failures by claiming the agricultural sector does not pay taxes. He mentioned that during the IMF agreement negotiations, Sindh was given only two to three days to express concerns.
He warned that if farmers stop cultivating crops due to financial losses, food security will be at risk. He shared his personal experience, stating that his family’s thousands of acres of land have become unproductive due to dam construction, and even if he wanted to sell the land, there would be no buyers, highlighting the importance of water resources.
Murad disclosed that the federal government had recently informed them that the IMF team will not come if they didn’t approve the bill, and in that case the IMF agreement could be terminated, harming the country. He criticised the federal government for getting approved similar bills in other provinces first before pressuring Sindh.
Copyright Business Recorder, 2025
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