Govt announces 10% super tax on large scale industries

June 24, 2022 (MLN): The government has imposed a super-tax of 10% on large-scale industries in a bid to support poor people under its poverty alleviation plan.

This was announced by PM Shehbaz Sharif after chairing a meeting of his economic team during which important decisions were taken related to budget 2022-23.

The industries on which a 10% super tax was levied included cement, steel, sugar, oil and gas, fertiliser, banking, textile, chemical, beverage, automobile industries, airlines, and cigarettes.

In addition, “1% tax has been imposed on those earning over Rs150 million, 2% on those earning over Rs200, 3% on those earning over Rs250 million and 4% on those earning over Rs300 million.

Following the announcement of the Super tax, the local bourse witnessed a blood bath as the benchmark KSE-100 index lost 2,053.35 points so far [12:03 PST] and currently trading at 40,663.62- mark or down by 4.81%.

"The decisions taken now will save the country from bankruptcy," PM said in a television address.

Such sectors, which have an annual income of Rs300million, would pay 10% super tax, he said.

He further said that 60% of the formal sector was paying taxes, however, the 40% informal sector was not part of the tax net.

Regarding the International Monetary Fund (IMF) programme, he said " If the IMF doesn’t put forward any further conditions, I am hopeful that we will be able to reach a staff-level agreement with them soon.”

Earlier today, Federal Minister for Finance and Revenue, while speaking to said that super tax has been imposed for one year to bridge the fiscal deficit gap.

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