KARACHI: The Korangi Association of Trade and Industry (KATI) has welcomed the approval of the Agricultural Income Tax (AIT) Bill by the Sindh government, calling it a significant step toward expanding the province’s tax base and ensuring a more equitable tax distribution.

KATI President Junaid Naqi hailed the bill as a historic and much-needed reform, emphasising that it would reduce the existing tax burden on industries and the salaried class.

He stated that the agricultural sector contributes 26% to the GDP, yet it remained exempt from taxation, placing the entire burden on industries and salaried individuals. The introduction of this tax will bring balance to the economy.

Naqi further expressed full support for the Sindh government’s initiative, highlighting that even the opposition backed the bill, recognising its necessity. He added that implementing agricultural income tax will help Sindh overcome financial challenges and expand the tax net, strengthening the economy.

Naqi noted that the Sindh Agricultural Income Tax Bill 2025 would enhance tax collection, leading to increased revenue for vital sectors such as infrastructure, education, and healthcare.

The KATI chief also acknowledged the government’s decision to impose a super tax on agricultural income exceeding Rs 1.5 billion, with the Sindh Revenue Board (SRB) overseeing its collection.

He remarked that this will enhance transparency and stability in the tax system. If implemented effectively, it will attract investment and drive economic growth in the province.

He urged the Sindh government to ensure the efficient utilization of tax revenues for the benefit of businesses and the general public.

He also suggested that other provinces follow suit, adopting similar tax policies to create a fairer and more balanced taxation system across the country.

Copyright Business Recorder, 2025