KARACHI: The Sindh government has officially imposed a super tax on high agricultural incomes under the newly enacted Sindh Agricultural Income Tax Act 2025, set to take effect from January 1, 2025, according to the Sindh Revenue Board (SRB).
The super tax, which will be collected annually, targets only large-scale agricultural earners, with no tax imposed on incomes below Rs 150 million.
Super Tax Slabs on Agricultural Income:
- Rs 150–200 million: 1% super tax
- Rs 200–250 million: 2%
- Rs 250–300 million: 3%
- Rs 300–350 million: 4%
- Rs 350–400 million: 6%
- Rs 400–500 million: 8%
- Above Rs 500 million: 10%
The measure is part of a broader effort to increase provincial revenue and meet international financial commitments, particularly under pressure from the International Monetary Fund (IMF).
IMF Influence and Legislative Push
The Sindh Assembly passed the Agriculture Income Tax Bill 2025 earlier in February. During the session, Sindh Chief Minister Murad Ali Shah disclosed that the IMF had strongly urged the bill’s passage, warning of serious economic consequences.
“We were clearly told that the IMF team would not visit, and the country could face default if this bill was not enacted,” CM Murad told lawmakers.
He criticized the IMF’s approach, noting a lack of understanding of local agrarian realities, especially the distinction between small farmers (haris) and large landowners.
Concerns Over Tax Collection
The chief minister also raised doubts about the effectiveness of the Federal Board of Revenue (FBR), which is expected to oversee the collection of the new tax.
“The FBR has a poor track record and has consistently failed to meet its targets,” Shah said. “It’s been plagued by corruption.”
Despite concerns, the Sindh government appears determined to press ahead, framing the super tax as a necessary step toward fiscal reform and equity, especially at a time when global lenders are demanding broader taxation of untapped sectors.
