The Korangi Association of Trade and Industry (KATI) has welcomed the Sindh government’s approval of the Agricultural Income Tax (AIT) Bill, 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, emphasizing that it would reduce the 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 expressed full support for the Sindh government’s initiative, highlighting that even the opposition backed the bill, recognizing its necessity. He added that implementing an agricultural income tax would 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, increasing revenue for vital sectors such as infrastructure, education, and healthcare.

President KATI 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 efficiently utilise tax revenues to benefit 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.