Karachi, May 22, 2025 – The Government of Sindh has officially notified the implementation of super tax rates on agricultural income, following the enactment of the Sindh Agricultural Income Tax Act, 2025.
This landmark legislation introduces a structured framework for the taxation of high-income agricultural landowners, with the super tax designed as an additional levy over and above the existing tax under Section 3(1) of the Act.
Effective from the agricultural income year commencing January 1, 2025, the super tax will be assessed annually and is applicable at progressive rates based on the total agricultural income earned. The rates are detailed in the Second Schedule of the Act and are aimed primarily at large-scale agricultural operations generating significant revenues.
The following super tax rates apply to varying income brackets:
1. 0% for income up to Rs150 million
2. 1% for income exceeding Rs150 million but not exceeding Rs200 million
3. 2% for income exceeding Rs200 million but not exceeding Rs250 million
4. 3% for income exceeding Rs250 million but not exceeding Rs300 million
5. 4% for income exceeding Rs300 million but not exceeding Rs350 million
6. 6% for income exceeding Rs350 million but not exceeding Rs400 million
7. 8% for income exceeding Rs400 million but not exceeding Rs500 million
8. 10% for income exceeding Rs500 million
This move is being seen as part of Sindh’s broader efforts to enhance revenue generation from the agricultural sector, which has traditionally enjoyed a lighter tax burden compared to other sectors. The introduction of the super tax aims to bring greater equity and fiscal balance, ensuring that high-income earners within the agricultural economy contribute more significantly to provincial resources.
Observers note that this policy could also drive more transparency in income reporting within the agricultural sector, which has often been criticized for underreporting earnings. However, it remains to be seen how stakeholders respond to the enforcement and collection mechanisms for the new super tax regime.