Sindh’s prime minister Murad Ali Shah accused the Federal Income Board (FBR) of blaming the agricultural sector for covering their own failures in tax collection.
Speaking at the Sindh Assembly, he reiterated that Prime Minister Shehbaz Sharif recognized the deeply rooted corruption of FBR.
“FBR has failed in multiple areas, and is now blaming agriculture for tax evasion,” said Murad Ali Shah. He stressed that the Sindh Income Board (SRB) has constantly fulfilled its tax collection objectives, while FBR has fought.
In addition, he pointed out that the agricultural tax has been in force during the last 30 years, but in May last year, the Federal Government proposed that FBr take over its collection.
Sindh’s prime minister Murad Ali Shah said: “FBR is a corruption center, and it’s not just that I say this, even the prime minister has admitted it. He said that the agricultural sector does not pay taxes.”
He added: “This narrative was still spreading, and then the IMF said:” Fiscal Agriculture. “After the discussions, we were informed about this demand, but we refused to accept it.
Sindh’s prime minister, Murad Ali Shah said: “When the IMF agreement was completed, they gave us only two or three days to review it. We sent our team and express our concerns. We have to consider, if our farmers cannot cultivate it .
He added: “My family has thousands of land acres, but after the construction of a dam, it is no longer cultivable. Even if I wanted to sell it, no one would buy it. This highlights the importance of water. We made it clear that implementing this tax on Hurry would create problems.
Murad Ali Shah continued: “A few days ago, they informed us that the IMF team would not come. If they do not come, the agreement collapses, and that would affect the whole country. We did not want to be the reason for the failure of the agreement.
Criticating for the management of federal government tax of the lagoons.
He concluded by stating: “salaried individuals contribute the largest amount of taxes.”
Meanwhile, the Sindh cabinet has approved the 2025 agricultural income tax bill, which has entered into force as of January.
The new Fiscal Law excludes the collection of livestock and the changes of the Income Board (Bor) to the Sindh Income Board (SRB).
The Sindh Prime Minister Murad Ali Shah declared that in the case of natural disasters, tax adjustments would be made.
Land owners who hide their cultivated land will face sanctions, while small agricultural companies will be taxed at 20% and companies larger than 28%.
According to the bill, farmers who gain up to RS150 million will annually remain exempt.
Those who win between RS150 million and RS2 billion will pay taxes of 1%, while the highest income levels will face rates of up to 10% for profits exceeding RS5 billion.
The Sindh cabinet said that implementing the tax could lead to an increase in vegetable prices, wheat and rice.
