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If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. •

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Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. •

Agricultural Income Tax Rates (2025-26) in Punjab, Pakistan

Explore Punjab's agricultural income tax, its rates, applicability, and how it differs from federal tax. Learn how the province collects and utilizes this revenue.

It’s important to note that agricultural income in Pakistan is generally exempt from federal income tax. This means any income earned from agricultural activities is not subject to taxes collected by the federal government. The tax on agricultural income, as defined by the Punjab Agricultural Income Tax Act, is collected by the respective provincial government. This revenue remains within the province for its development purposes. This article explores the tax levied on agricultural income in the province of Punjab. It highlights the tax rates, applicability, and how it differs from the federal tax structure.

Tax Rates on Agricultural Income in Punjab

Sr. No.	Income	Rate of Tax
1.	Not exceeding Rs. 600,000/-	Nil
2.	Exceeding Rs. 600,000/- but not exceeding Rs. 1,200,000/-	15% of the amount exceeding Rs. 600,000/-
3.	Exceeding Rs. 1,200,000/- but not exceeding Rs. 1,600,000/-	Rs. 90,000/- + 20% of the amount exceeding Rs. 1,200,000/-
4.	Exceeding Rs. 1,600,000/- but not exceeding Rs. 3,200,000/-	Rs. 170,000/- + 30% of the amount exceeding Rs. 1,600,000/-
5.	Exceeding Rs. 3,200,000/- but not exceeding Rs. 5,600,000/-	Rs. 650,000/- + 40% of the amount exceeding Rs. 3,200,000/-
6.	Exceeding Rs. 5,600,000/-	Rs. 1,610,000/- + 45% of the amount exceeding Rs. 5,600,000/-

These tax rates are specific to Punjab province and apply to agricultural income generated within its borders. Other provinces in Pakistan have their own agricultural income tax structures.

Penalties and Fines

The amendments to the Punjab Agricultural Income Tax Act introduce stricter penalties for failing to submit tax statements on time and increase the surcharge for late tax payments. Previously, the penalty for late submission was a flat Rs. 25 per day, capped at Rs. 1,000. Now, it is either 0.1% of the tax due per day or Rs. 1,000 per day, with minimum penalties set at Rs. 10,000 for incomes up to Rs. 1.2 million, Rs. 20,000 for incomes between Rs. 1.2 million and Rs. 40 million, and Rs. 50,000 for incomes above Rs. 40 million. Additionally, the default surcharge for non-payment or delayed payment of tax has increased from 5% per annum to the higher of either 12% or KIBOR plus 3%. These changes aim to enforce tax compliance more strictly by imposing heavier financial consequences for delays and defaults.

Punjab Agricultural Income Tax Calculator

Farmers and agribusinesses in Punjab are subject to specific tax slabs and rates defined by provincial law. Instead of manually working through these complex brackets, you can use our Punjab Agricultural Tax Calculator to calculate your exact tax liability based on Punjab’s rules and regulations.

Beyond Punjab

If you earn income through agriculture in other parts of Pakkistan, it’s essential to understand the tax laws of the province where your agricultural land is situated. Here’s a province-wise breakdown of agricultural income tax rules in Pakistan:

In Sindh, agricultural income up to Rs. 600,000 annually is tax-free. However, if your income exceeds Rs. 600,000, it becomes taxable under the Sindh agricultural tax rules. The Sindh Revenue Board provides detailed tax slabs and rates for agricultural landowners and tenants.
In Khyber Pakhtunkhwa, the exemption also applies to annual agricultural income up to Rs. 600,000. For income exceeding Rs. 600,000, provincial tax is levied based on the KPK agricultural income tax slabs, as outlined by the KPK Revenue Authority.
Similarly, in Balochistan agricultural income above Rs. 600,000 in an year is taxed as mentioned in agricultural tax rates in Balochistan.

In Conclusion

The taxation of agricultural income in Pakistan follows a decentralized approach. While the federal government exempts agricultural income from tax, provinces like Punjab have their own tax structures specifically designed for this income source. This system allows provinces to generate revenue from their agricultural sector and utilize it for their own development initiatives.

Quratul Ain

Content Writer at TaxationPk, responsible for creating engaging and informative content on taxation in Pakistan. Dedicated to making complex tax matters accessible through well-researched and compelling articles.

Articles: 77

10 Comments

Shahbaz

September 23, 2025 / 5:08 am Reply

What about land base agricultural it ?
Muhammad Shahid

August 15, 2025 / 9:53 pm Reply

The agriculture income tax slabs mentioned in this article by Quratul Ain are perfect as per notification and are application from Tax year 2025(Financial year 01-07-2024 to 30-06-2025). Although it is provincial tax but according to Income Tax Ordinance, if agriculture tax is not paid into provincial goverment account, before filing incometax return to FBR, the corresponding agriculture income will remain unexplained in terms of Section 111 of the Income Tax Ordinance, 2001.
- Hayat Akbar
  
  August 15, 2025 / 10:34 pm Reply
  
  Thanks for your feedback.
Ijaz Ahmed

April 25, 2025 / 5:57 pm Reply

Tax rates are not updated, new rates are applicable retrospectively.
- Quratul Ain
  
  April 25, 2025 / 6:26 pm Reply
  
  You’re right, but we were unable to trace the new rates issued by Punjab via any official document. If you’ve any link to that you can share. We will update them.
  - Ali Raza
    
    July 3, 2025 / 1:29 pm Reply
    
    I am sharing updated Agri Income Tax Rates on your given and email and whatsapp.
  - MNA
    
    July 9, 2025 / 1:34 pm Reply
    
    Can you plz share link on whatsapp at 03213020499
  - Rai Bilawal Mahmood
    
    July 10, 2025 / 5:09 am Reply
    
    Tehsildar and patwaris are receiving this tax. They show up with a letter signed by local government.
  - Zia Ul Hasnain Raja
    
    July 11, 2025 / 3:55 pm Reply
    
    Agriculture income tax slabs given in your article looks new and amended. In Agri IT returns for year 2024/25 old slabs will be used or new.
    To me it looks these new slabs will be applied from 1st July 25, and return 2025/26 will be compiled on these income slabs.
    Your comments please
    - Hayat Akbar
      
      July 11, 2025 / 11:44 pm Reply
      
      The first thing is that Agricultural Tax Rates (amended) are applicable in all provinces from July 2024. 2nd thing is that these are provincial taxes and has nothing to do with your FBR’s annual tax-returns (tax purpose).