The Sindh cabinet approved the 2025 agricultural income tax bill, which came into force from January.
The new tax law excludes livestock and recovery of the Board of Revenue (BOR) to the Sindh Revenue Board (SRB).
Sindh -chief Minister Murad Ali Shah said that in the event of natural disasters, tax adjustments would be made.
Land owners who hide their cultivated land will face penalties, while small agricultural companies will be taxed in 20% and larger companies at 28%.
Under the bill, farmers winning up to 150 million rupees per year will remain exempt.
Those who earn between 1550 million rupees and 200 million rupees will pay 1% tax, while higher income tranches will face rates up to 10% for profits greater than 500 million rupees.
The Sindh cabinet noted that the implementation of the tax could increase the prices of vegetables, wheat and rice.
Shah stressed that the decision had been made in national interest, but said that it would arouse concerns from the federal government.
The chief minister also underlined Sindh’s share in the NFC price, noting that Punjab receives 51.74%, Sindh 24.55%, Khyber Pakhtunkhwa 14.62%and Balutchistan 9.09%.
He said Sindh had received 498 billion rupees in 2022, with 77 billion rupees of payments in circulation now paid.
To reduce documents and costs, the Sindh government has approved a digital system for firm procedures.
The ministers will receive tablets to access articles on the agenda and the Reunion registers, which must be returned during a change of mandate.
In addition, the firm has approved 150 million rupees for new equipment and has awarded a solar house system supply contract to the National Radio & Telecommunication Corporation (NRTC).
