Islamabad, March 29: The agricultural income tax will be applicable retrospectively from January 1, 2025, as all provinces have legislated and notified their respective laws.
Tax collection will begin from July 1, 2025, with provisions aligning provincial agricultural tax regimes with federal income tax structures.
Key Highlights:
🔹 Retrospective Enforcement:
Effective date for collection: January 1, 2025
Tax collection begins: July 1, 2025
🔹 Provincial Legislation Timelines:
Sindh: Law passed on Feb 3, 2025, assented on Feb 11, 2025
Punjab: Law passed on Nov 14, 2024, assented on Nov 27, 2024
KP: Law passed on Jan 27, 2025, assented on Feb 7, 2025
Balochistan: Law passed on Feb 3, 2025
Provincial Tax Slabs & Fines:
Sindh Agricultural Income Tax Act 2025
Income below Rs 600,000 → 0% tax
Rs 600,000 – 1,200,000 → 15% on exceeding amount
Rs 1,200,000 – 1,600,000 → Rs 90,000 + 20% on exceeding amount
Above Rs 5,600,000 → Rs 1,610,000 + 45% tax
Super tax imposed on high earners
Punjab Agricultural Income Tax (Amendment) Act 2025
Exemptions on farm income removed
Livestock sector taxed
Penalties for tax default:
Income < Rs 1.2 million → Rs 10,000 fine
Income < Rs 40 million → Rs 20,000 fine
Income > Rs 40 million → Rs 50,000 fine
Super tax as per Income Tax Ordinance 2001
KP Agricultural Income Tax Act 2005
Separate tax slabs for small farmers & corporate farming
Balochistan Tax on Land and Agricultural Income (Amendment) Act 2024
Effective from January 1, 2025
The agricultural tax aligns with federal income tax structures, ensuring a uniform approach across all provinces.
