Sindh’s New Super Tax on Agricultural Income Targets High Earners from 2025 - Bio Points News

Karachi, Pakistan (May 23, 2025): The Sindh government has introduced a super tax on agricultural income as part of the Sindh Agricultural Income Tax Act 2025, effective January 1, 2025. Administered by the Sindh Revenue Board (SRB), the progressive tax targets high earners in the agricultural sector, aiming to broaden the tax base and meet fiscal commitments under Pakistan’s $7 billion IMF bailout program. The move, announced amid economic reforms, has sparked both support and concerns over its impact on Sindh’s farming community.

The super tax applies only to annual agricultural incomes exceeding Rs 150 million, with rates escalating from 1% to 10% based on income brackets. This follows the Sindh Assembly’s unanimous approval of the Act on February 4, 2025, aligning with similar measures in Punjab and Khyber Pakhtunkhwa. Chief Minister Murad Ali Shah emphasized the SRB’s efficiency over the Federal Board of Revenue (FBR), noting, “Agricultural tax has been in place for 30 years, but the FBR’s failures necessitated this reform.”

Super Tax Structure and Exemptions

No super tax applies to incomes up to Rs 150 million. The progressive rates are:

• 1% on incomes between Rs 150–200 million
• 2% on Rs 200–250 million
• 3% on Rs 250–300 million
• 4% on Rs 300–350 million
• 6% on Rs 350–400 million
• 8% on Rs 400–500 million
• 10% on incomes above Rs 500 million

Regular agricultural income tax under the Act exempts incomes up to Rs 600,000, with rates ranging from 15% for Rs 600,000–1.2 million to 45% for incomes above Rs 5.6 million. Livestock is excluded, and advance taxes based on land cultivation have been abolished. Corporate farming faces a 20% tax for small companies and a 29% tax for large ones.