Bill says if an individual's annual agricultural income exceedesRs150 million, he will fall under super tax category
PESHAWAR: (UrduPoint/Pakistan Point News-Jan 27th, 2025) The Khyber Pakhtunkhwa Assembly on Monday approved the Agricultural Income Tax Bill 2025, which will come into effect from January 1, 2025.
The bill said that if an individual's annual agricultural income exceeded Rs150 million, he would fall under the super tax category.
Additionally, an annual agricultural tax would be imposed on 50 acres of cultivated land or more than 100 acres of uncultivated land.
To determine tax rates, agricultural land has been divided into three zones:
Zone One: Rs 1,200 per acre tax on land between 12.5 to 25 acres.
Zone Two: Rs 900 per acre tax on land between 12.5 to 25 acres.
Zone Three: Rs 500 per acre tax on land between 12.5 to 25 acres.
Under the approved bill, an annual agricultural income between Rs600,000 and Rs1.2 million will be taxed at 15% while income between Rs1.2 million and Rs1.6 million will be subject to a 20% tax.
The initiative is being seen as a significant step by the government to formally integrate agricultural income into the taxation system.
