Karachi, February 4, 2025 – The Korangi Association of Trade and Industry (KATI) has expressed strong support for the Sindh government’s approval of the Agricultural Income Tax (AIT) Bill, calling it a major step toward expanding the province’s tax base and fostering a more equitable tax distribution system.
This decision comes after considerable debate and was hailed as a much-needed reform for the economic landscape of the province.
KATI President Junaid Naqi praised the bill, describing it as a historic development that will help reduce the heavy tax burden placed on industries and the salaried class. He emphasized that while the agricultural sector contributes a substantial 26% to Pakistan’s GDP, it had remained exempt from taxation. As a result, industries and salaried individuals have shouldered the full weight of the tax burden. “This tax will bring balance to the economy and ensure that all sectors contribute fairly,” said Naqi.
The President of KATI highlighted the significant support the bill garnered, not just from the ruling party but also from the opposition. This bipartisan backing, he noted, reflects a broad consensus on the necessity of the tax to address the province’s financial challenges. Naqi believes that the introduction of agricultural income tax will significantly expand Sindh’s tax net and strengthen the provincial economy by generating additional revenue.
The Sindh Agricultural Income Tax Bill 2025, which imposes a super tax on agricultural income exceeding Rs. 1.5 billion, aims to enhance tax collection and support essential sectors such as infrastructure, education, and healthcare. With the Sindh Revenue Board (SRB) tasked with overseeing its implementation, KATI President Naqi expressed optimism about the increased transparency and stability this tax system would bring.
Naqi also pointed out that the effective implementation of the tax will likely attract more investment, boost economic growth, and improve public services in the province. He urged the Sindh government to ensure that the revenue generated is effectively utilized for the benefit of businesses and the broader public.
Furthermore, he encouraged other provinces to consider adopting similar agricultural income tax measures to create a more balanced taxation system across the country. The move by the Sindh government marks an important milestone in the ongoing efforts to reform the country’s tax system and promote sustainable economic development.