Sargodha, the centre of Pakistan's kinnow belt, is a divisional city with a major air base, a university, citrus packing and processing, and farms watered by the canals of the Jhelum and Chenab doab.
Kinnow, Packing and Export
Most of Pakistan's kinnow comes from Sargodha's orchards. Orchard owners selling their own fruit, or receiving payment from a contractor for the crop, earn agricultural income. Packing houses that buy fruit, wash, wax, grade and pack it for export to the Gulf, Russia, Central Asia and the Far East earn business income. Export proceeds received through banks carry tax collected at source, which may be final under the export regime. Packing houses also deal with cartons, wax, labour and cold storage, all deductible costs.
Orchard Contractors
Contractors buy orchards on the tree, pick and sell to packing houses and markets; their margin is business income.
The Air Base
Air force personnel posted at Sargodha have tax withheld; pensions are generally exempt.
University and Colleges
Teachers at the University of Sargodha have salary tax withheld; consultancy is declared separately.
Traders and Shops
Wholesalers and retailers keep supplier bills, daily sales and receivables.
Property
Plots in the city's schemes cost less in advance tax for active filers.
Cold Storage for Citrus
Cold stores holding kinnow for later sale charge rent per crate, which is business income for the owner.
Shops
Retailers keep supplier bills and daily sales.
Their stock is counted on 30 June.
Frequently Asked Questions
Is kinnow from my orchard taxable?
It is agricultural income.
Is tax on kinnow export proceeds final?
It depends on the regime applicable.
Are packing house cartons and wax deductible?
Yes, as business costs.
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