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.
Shah emphasized that the decision was made in national interest, but said he would raise concerns with the federal government.
The main minister also highlighted Sindh’s participation in the NFC award, noting that Punjab receives 51.74%, Sindh 24.55%, Khyber Pakhtunkhwa 14.62%and Baluchistan 9.09%.
He said Sindh received RS498 billion in 2022, with RS77 billion in pending payments now liquidated.
To reduce paperwork and costs, the Sindh government approved a digital system for cabinet procedures.
The ministers will receive tablets to access the items of the agenda and the meetings records, which must be returned to a change in office.
In addition, the Cabinet approved RS150 million for new teams and granted a supply contract of the solar home system to the National Radio and Telecommunications Corporation (NRTC).
