SCA rejects ‘45pc agricultural income tax’

HYDERABAD: The Sindh Chamber of Agriculture (SCA) has completely rejected the 45 percent agricultural income tax, declaring the act unconstitutional and illegal. They announced their decision to challenge it in court and called on farmers across Sindh to boycott wheat cultivation this year.

The meeting of the Sindh Chamber of Agriculture was held today at its headquarters in Hyderabad under the chairmanship of Chief Patron and Central President, Professor Dr. Syed Nadeem Qamar. A large number of farmers from across Sindh attended the meeting.

During the meeting, the farmers strongly protested against the imposition of a 45% agricultural income tax by the government under IMF directives. They declared the act unconstitutional, illegal, and unethical, and announced that they would challenge it in court. The farmers argued that they are not receiving fair prices for their produce, so there is no justification for imposing such a tax.

The Chamber urged all farmers across Sindh to refuse to pay the agricultural income tax and warned that if the government resorts to arrests for non-payment, millions of farmers in Sindh are ready to face imprisonment but will not pay the tax. They announced a complete boycott of the agricultural income tax and demanded the government provide tax exemptions to farmers, similar to those given to industrialists.

The Chamber also called on all farmers in Sindh to boycott wheat cultivation for the upcoming 2025-2026 season, citing inadequate support prices. They recommended growing alternative crops such as mustard, nigella (kalonji), sunflower, and other oilseed crops instead. The farmers said that due to very low wheat prices, they cannot even recover the costs of production, and this year will be marked as a boycott year for wheat cultivation.

The Chamber expressed deep concern over a 40% decline in cotton production this year, estimating that the yield will not exceed 4 million bales. Farmers are receiving only around Rs. 6,500 per maund for cotton, while the Sindh Agriculture Minister had promised a price of Rs. 11,000, which has not materialized.

The Chamber demanded that the 18% local tax on cotton be eliminated and reduced to 0%, and that a 25% tax be imposed on imported cotton to discourage imports and promote local production.

Copyright Business Recorder, 2025