KARACHI: The Sindh cabinet is set to approve a proposal to amend the provincial agriculture income tax law to revise tax brackets in compliance with the with the Intern­ational Monetary Fund’s (IMF) demand to align the taxation of farm incomes with the federal income tax system, it emerged on Sunday.

In this regard, Sindh Chief Minister Syed Murad Ali Shah has called a meeting of the provincial cabinet on Monday (today) to approve the draft of the Sindh Land Tax and Agricultural Income Tax Bill. After the cabinet’s consent, the bill will be introduced in the provincial assembly for legislation.

Sources in the ruling Pakistan Peoples Party said that the CM had discussed the matter with provincial legislators belonging to his par­ty at a meeting held the other day.

Murad calls cabinet meeting today

They said that the CM briefed the MPAs on the proposed legislation regarding agricultural tax. However, several lawmakers expressed their concerns over the revision of tax rates on agriculture income.

Confirming this, Sindh government spokesperson MPA Sadia Javed told Dawn: “There were definitely some reservations from the party members, but a consensus was built to take up the issue in Monday’s meeting [of the cabinet].”

“The CM, however, made it clear that it’s wrong to assume that the agriculture income is tax-free. It is already taxed, but the IMF demands tax slabs range between 15 per cent and 45pc on agriculture income,” she said.

She said that the Punjab and Khyber Pakhtunkhwa governments had already amended the law and the Balochistan cabinet had approved the proposal and the provincial assembly would pass the law soon. “So Sindh is left with no space to delay this proposal, which is crucial for the national consensus and IMF programme.”

To a question, she said that the decision would “definitely have an impact on the party’s power base in Sindh” but it was being done only for the sake of national economy.

Published in Dawn, February 3rd, 2025