Sindh Minister of Chief Murad Ali Shah has accused the Federal Board of Revenue (FBR) of accusing the agricultural sector of covering his own failures in tax collection.
He spoke in the Sindh assembly and reiterated that Prime Minister Shehbaz Sharif himself recognized FBR’s deeply rooted corruption.
“FBR has failed in several areas, and now it is accusing agriculture of tax evasion,” said Murad Ali Shah. He emphasized that Sindh Revenue Board (SRB) has consistently met its tax collection targets while FBR has fought.
He also noted that the agricultural tax has been in place for the last 30 years, but last May suggested the federal government that FBR took over its collection.
Sindh Minister of Chief Murad Ali Shah said, “FBR is a hub of corruption, and it’s not just me who says this – even Prime Minister claimed that the agricultural sector is not paying taxes.”
He added, “This tale continued to spread, and then the IMF said, ‘Tax Agriculture.’ After discussions, we were informed of this requirement, but we refused to accept it.
Sindh -Chief Minister Murad Ali Shah said, “When the IMF agreement ended, we only got two to three days to review it. We sent our team and expressed our concerns. We must consider -if our farmers are unable to cultivate crops where do we get our food from?
He added, “My family owns thousands of hectares of land but after the construction of a dam it can no longer be cultivated. Even if I would sell it, no one would buy it. This highlights the meaning of water. We made it is clear , that implementation of this tax in a hurry would create problems.
Murad Ali Shah continued, “A few days ago we were informed that the IMF team was not coming. If they do not come, the deal collapses and it would affect the whole country. We would not be the reason for the failure of the agreement.
The federal government that criticized the federal government’s handling of taxation said: “The federal government should not deal with provinces in this way. My ministers and I, as well as many others, avoid taxation.
He concluded by indicating that “paid individuals contribute the highest amount in taxes.”
Meanwhile, the Sindh Cabinet has approved the Agricultural Income Tax Proposal 2025, which has come into force from January.
The new tax law excludes livestock and change collection from the Revenue Board (Bor) to Sindh Revenue Board (SRB).
Sindh Minister of Chief Murad Ali Shah declared that in the event of natural disasters, tax adjustments would be made.
Gruna owners who hide their cultivated land will be subjected to sanctions, while small agricultural companies will be taxed at 20% and larger companies at 28%.
According to the bill, farmers who earn up to RS150 million remain exempt.
Those who earn between RS150 million and RS200 million.
The Sindh Cabinet noted that the implementation of the tax could lead to increased prices for vegetables, wheat and rice.
