On Friday, Shehbaz Sharif, Prime Minister of Pakistan made an announcement related to taxing major industries with a 10% Super Tax.
In his address to the nation, Shahbaz urged that the government has taken the initiative to save Pakistan from getting bankrupt. He further added that the decision may not be a favorable one now but will be beneficial for long-term purposes.
The list of industries on which a 10% supertax is imposed includes automobiles, cement, steel, sugar, oil and gas, fertilizers, LNG, the banking sector, and manufacturing industries. He further said that this imposition will help the poor combat poverty.
Shehbaz Sharif further promised that the relief will be provided to the people based on the formulation of tax policy by the government.
Furthermore, he said that those individuals earning more than Rs. 150 million yearly, 1% tax will be imposed on them. On the other hand, a 2% tax is imposed on those earning above Rs. 200 million or more annually. Similarly, those earning more than Rs. 250 million will have to pay 3% tax. While a 4% tax is imposed on those earning above Rs300 million.
PM said to maximize the burden of price hikes on people with low income, the government has to take this step. He said it is for the first time in the history of Pakistan that rich people will be directly taxed on the net income they earn starting from the next fiscal year budget.
Shehbaz Sharif said that the government of Pakistan is giving a subsidy of Rs. 2000 per month to ease the pressure on poor people of the society. He further added that the government will take all the necessary steps for providing relief to the common man.
“Our government would keep the nation on board regarding difficult economic decisions and would not deceive them, unlike the PTI government.” Miftah Ismail on Thursday said that the government plans to bring rich people into the tax net.
The Finance Minister said that the ruling elite of the country has also been affected by the taxes imposed. He said, “It will increase the tax burden of companies owned by the PM. My company’s tax burden will also increase by Rs200 million and Rs250 million”.
