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