Balochistan's New Tax Bill Sparks Farmers' Outcry

The Balochistan Assembly has passed the "Balochistan Tax on Land and Agricultural Income Bill," introducing an income tax of up to 45% on agricultural earnings. This decision has faced strong opposition from farmers' organizations, who view it as an anti-farmer policy.

Tax Details

The bill specifies that agricultural income up to PKR 600,000 per year will remain tax-free. Incomes between PKR 600,000 and PKR 1,200,000 will be taxed at 15%. For earnings between PKR 1,200,000 and PKR 1,600,000, a fixed tax of PKR 90,000 plus 20% on income exceeding PKR 1,200,000 will apply. Incomes from PKR 1,600,000 to PKR 3,200,000 will incur a fixed tax of PKR 170,000, with a 30% tax on earnings above PKR 1,600,000. For incomes between PKR 3,200,000 and PKR 5,600,000, a fixed tax of PKR 650,000 plus 4% on income exceeding PKR 3,200,000 is imposed. The highest tax bracket affects incomes above PKR 5,600,000, with a tax of PKR 1,610,000 plus 45% on additional earnings.

Farmers' Concerns

The tax was introduced following recommendations from the International Monetary Fund (IMF). Zahoor Ahmad Baloch, a leader of the Kisan Tehreek (Farmers' Movement), has criticized the bill, stating it harms farmers' interests. The bill's approval has sparked debate on its financial impact on farmers and potential consequences for food production in the region. Concerns have been raised about the long-term effects on agriculture, food security, and rural livelihoods.