KARACHI: Farmers across Sindh have strongly condemned the government’s move to impose a 45% agricultural income tax, warning that it would devastate the country’s already struggling agriculture sector.
The Sindh Chamber of Agriculture (SCA) and farmer groups termed the tax hike “illegal, unconstitutional, and cruel,” threatening to challenge it in court.
‘Already Paying Taxes, Yet No Support’
Speaking to Business Recorder, SCA Senior Vice President Nabi Bux Sathio clarified a long-standing misconception:
“Farmers have been paying 5% to 15% agricultural income tax and advance tax of Rs. 200 per acre since 1994. Unlike industrialists and traders, we do not enjoy government incentives such as bank loans, special industrial zones, or export rebates. So why increase the tax burden to 45%?”
Sathio said agricultural produce worth Rs. 600,000 remains exempt, but beyond that, the higher tax rate would crush farmers’ already thin profit margins.
Farmers Struggling with Rising Costs, Falling Prices
He highlighted that for the past 19 months, farmers have been receiving 20%-50% lower prices for wheat, rice (paddy), cotton, and oilseed crops, with only sugarcane showing better returns.
Meanwhile, input costs have skyrocketed:
A 50kg bag of DAP fertilizer rose from Rs. 9,000 to Rs. 13,000
Urea fertilizer jumped from Rs. 2,600 to Rs. 4,400
Hybrid rice seed (1kg) climbed from Rs. 1,500 to Rs. 2,000
Diesel price surged from Rs. 186/litre to Rs. 286/litre
“How can farmers survive when inputs are soaring, and crop prices are falling?” Sathio asked.
Food Security at Risk
Farmers Organisation Council Sindh Chairman Jawaid Junejo warned that such policies could destroy the agriculture sector and trigger food insecurity.
“The government must reconsider this decision. Without relief for farmers, the country’s food supply chain will collapse,” Junejo said.
Interestingly, Prime Minister Shehbaz Sharif earlier stated that the IMF had agreed to spare the agriculture sector from harsh taxation, making the government’s move even more controversial.
Key Takeaways
✅ Farmers plan to challenge the tax in court
✅ Input costs up by 50%-80% in two years
✅ Farmers already pay multiple agricultural taxes since 1994
✅ Food insecurity risk if the sector collapses
