KARACHI: The Sindh Cabinet is set to convene tomorrow (Monday) to approve the agriculture income tax, according to sources.
The cabinet session is scheduled for 9:00 AM on Monday, following the federal government's legislation on agriculture tax. The members of the provincial parliament have been informed that the bill for the enforcement of the agriculture income tax is expected to be approved during this session.
Sources indicate that the government has directed the parliamentary minister to ensure the passage of the agriculture income tax bill in the current assembly session. Under this bill, tax will be levied on agricultural incomes in the province.
The proposed agriculture income tax in Sindh could range from 15 to 45 percent per year, depending on the income levels, according to sources.
Sindh’s Chief Minister, Murad Ali Shah, addressed the parliamentary party meeting, noting that the three other provinces in Pakistan have already implemented agriculture taxes. He emphasized the necessity of introducing this tax in Sindh to align with the requirements set by the International Monetary Fund (IMF).
As part of its $7 billion bailout deal with Pakistan, the IMF has urged the country to increase government revenue, and one of the key measures suggested is the imposition of tax on agricultural income. This move is part of broader efforts to boost fiscal sustainability and meet the conditions outlined in the bailout agreement.
If approved, the agriculture income tax in Sindh is expected to play a crucial role in generating additional revenue for the provincial government.
