In a landmark legislative step, the Balochistan Provincial Assembly enacted the Balochistan Tax on Land and Agricultural Income (Amendment) Act, 2024, dated February 19, 2025. The Act amends the tax policy on agricultural income and land in Balochistan, implementing progressive tax rates, taxing corporate farming, zoning laws, and imposing heavy penalties for default.
“Assessee” replaced with “Taxpayer” throughout the law.
New definitions added for companies, small companies, and zones.
Introduction of Zone-wise land tax rates.
Progressive slabs were introduced for agricultural income.
Super tax on high agricultural incomes.
Strict penalties and surcharges for late filing and non-payment.
Zone-Wise Land Tax Rates (Effective 2025)
Land is categorized into 4 Zones for taxation, calculated per acre of irrigated land (1 acre irrigated = 2 acres un-irrigated). Mature orchards have separate rates.
Zone I
Cultivated Land Slab
Rate (per acre)
Up to 12.5 acres
Nil
12.5 – 25 acres
Rs. 1,200
25 – 50 acres
Rs. 2,500
Above 50 acres
Rs. 3,500
Mature Orchards (Irrigated)
Rs. 3,500
Mature Orchards (Un-irrigated)
Rs. 1,750
Zone II
Cultivated Land Slab
Rate (per acre)
Up to 12.5 acres
Nil
12.5 – 25 acres
Rs. 900
25 – 50 acres
Rs. 1,700
Above 50 acres
Rs. 2,500
Mature Orchards (Irrigated)
Rs. 2,500
Mature Orchards (Un-irrigated)
Rs. 1,250
Zone III
Cultivated Land Slab
Rate (per acre)
Up to 12.5 acres
Nil
12.5 – 25 acres
Rs. 500
25 – 50 acres
Rs. 1,000
Above 50 acres
Rs. 1,500
Mature Orchards (Irrigated)
Rs. 1,500
Mature Orchards (Un-irrigated)
Rs. 750
Zone IV
Cultivated Land Slab
Rate (per acre)
Up to 12.5 acres
Nil
12.5 – 25 acres
Rs. 300
25 – 50 acres
Rs. 600
Above 50 acres
Rs. 900
Mature Orchards (Irrigated)
Rs. 900
Mature Orchards (Un-irrigated)
Rs. 450
Agricultural Income Tax Rates – 2025 (Small Farmers)
Annual Agricultural Income
Rate of Tax
Up to Rs. 600,000
Nil
Rs. 600,001 – Rs. 1,200,000
Rs. 90,000 + 20% of the amount exceeding Rs. 1.2M
Rs. 1,200,001 – Rs. 1,600,000
Rs. 170,000 + 30% of the amount exceeding Rs. 1.6M
Rs. 1,600,001 – Rs. 3,200,000
Rs. 650,000 + 40% of the amount exceeding Rs. 3.2M
Rs. 3,200,001 – Rs. 5,600,000
Rs. 650,000 + 40% of amount exceeding Rs. 3.2M
Above Rs. 5,600,000
15% of the amount exceeding Rs. 600,000
Tax Rates for Corporate Farming (2025)
Type of Company
Rate of Tax
Small Company
20%
Any Other Company
29%
Super Tax on High Income (Section 6-A)
Applies to total agricultural income for 2025 onward:
Income Slab
Super Tax Rate
Up to Rs. 150 million
0%
Rs. 150M – Rs. 200M
1%
Rs. 200M – Rs. 250M
2%
Rs. 250M – Rs. 300M
3%
Rs. 300M – Rs. 350M
4%
Rs. 350M – Rs. 400M
6%
Rs. 400M – Rs. 500M
8%
Above Rs. 500 million
10%
Penalties for Non-Filing & Late Payment
Late Filing Penalty (Section 10-A)
Income Range
Minimum Penalty
Up to Rs. 1.2 million
Rs. 10,000
Rs. 1.2M – Rs. 40M
Rs. 20,000
Above Rs. 40 million
Rs. 50,000
Plus:
0.1% of tax payable or Rs. 1,000 per day (whichever is higher).
Default Surcharge (Section 10-B)
12% annually or KIBOR + 3%, whichever is higher.
Max surcharge cannot exceed 50% of the overdue tax.
Zoning & Assessment
The Board of Revenue is authorized to divide Balochistan into zones for assessment. Taxpayers must comply based on their district and zone classification.
Conclusion
The 2025 amendment introduces a structured and phased mechanism for taxing agricultural income in Balochistan, promoting compliance and focusing on high-income earners and corporate bodies. Agricultural enterprises and landowners need to identify their category carefully and file on time to escape penalties.
