As the Agricultural Income Tax Bill in Sindh nears approval, high-earning farmers in the southeastern region of Pakistan are preparing for a tax increase.
The PPP-led Sindh government plans to introduce taxes on agricultural income, with varying rates based on income brackets.
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According to the draft law, agricultural income up to Rs6 lac annually will remain exempt from tax, while those earning between Rs6 lac and Rs12 lac will be taxed at a 15% rate.
The Sindh Agricultural Income Tax Act 2025 proposes a 20% tax for agricultural income between Rs12 lac and Rs16 lac, and a 30% tax for income ranging from Rs16 lac to Rs32 lac. For higher incomes, progressive tax rates are introduced: 40% for income between Rs32 lac and Rs56 lac, and 45% for income exceeding Rs56 lac annually.
Additionally, the bill stipulates no super tax for agricultural incomes between Rs10 million and Rs150 million.
However, a super tax of 1% will apply to income between Rs150 million and Rs200 million, with rates increasing progressively for higher income levels: 2% for income between Rs200 million and Rs250 million, 3% for Rs250 million to Rs300 million, 4% for Rs300 million to Rs350 million, and 10% for incomes surpassing Rs500 million annually.
