The Balochistan Assembly has passed the “Balochistan Tax on Land and Agricultural Income Bill,” which will impose an income tax of up to 45% on agricultural earnings. The move has sparked strong reactions from farmers’ organizations, with leaders calling it an anti-farmer decision.
According to the documents of the proposed bill, agricultural income up to Rs. 600,000 per year will remain tax-exempt. However, income between Rs. 600,000 and Rs. 1,200,000 will be subject to a 15% tax.
For incomes ranging from Rs. 1,200,000 to Rs. 1,600,000, a fixed tax of Rs. 90,000 will be applicable, along with an additional 20% tax on the income exceeding Rs. 1,200,000.
Similarly, income between Rs. 1,600,000 and Rs. 3,200,000 will incur a fixed tax of Rs. 170,000, with a 30% tax on any earnings above Rs. 1,600,000.
For agricultural incomes between Rs. 3,200,000 and Rs. 5,600,000, a fixed tax of Rs. 650,000 will be imposed, with an additional 40% tax on income exceeding Rs. 3,200,000.
The highest tax slab includes incomes above Rs. 5,600,000, which will be taxed at a fixed amount of Rs. 1,610,000, with a 45% tax on any additional income.
The agricultural income tax has been introduced following recommendations from the International Monetary Fund (IMF). However, the move has been met with resistance from farmers’ groups. Zahoor Ahmad Baloch, a leader of the Kisan Tehreek (Farmers’ Movement), has strongly opposed the bill, calling it a measure against farmers’ interests.
The approval of the bill has triggered widespread debate in the agricultural sector, with concerns about the financial burden on farmers and its potential impact on food production in the region.