Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

CPI Preview: Inflation to fall below 14% YoY in May

Senate opposes Super Tax Extension

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After promising businesses and government that Super Tax will only be in effect for one year with intention to collection extra revenues for the rehabilitation of the Internally Displaced Persons, the tax has been extended into its third year. The Budget was anticipated to end this biased tax on the businesses in the country as the businesses community was hugely annoyed at the tax solely imposed upon them.

The businesses and wealthy individuals are the only ones who have to bear the grunt of this additional tax. As the government had exclusively requested the businesses and wealthy individuals to pay a tax which would be aimed at helping IDPs in the country for only one year, the Finance Minister has backed out of his commitment.

The Senate commenting on the scenario said that the Government had gotten very placid and were resorting to easy ways of making money by affecting the business confidence in the country.

In an earlier report FPCCI had had blamed Finance Minister of doing double talk on the Super Tax. Saying that, the government should clear its stance on Super Tax, it should either abolish it or impose it across the board. OICCI, a body representing 193 foreign companies in Pakistan asked the government to withdraw this unfair tax.

The income taxes for banks stand at 35%, where other companies pay a 35% tax on their earning. But under the Super Tax, companies earning more than Rs 500 million annually pay 33% inclusive of the Super Tax.

Although, the situation of IDPs since the offensive against terrorists in the tribal regions by Armed forces has been improving substantially. Most of the IDPs have been settled back in their homes and FATA had already stopped monthly stipend paid to the (Tribal Displaced Personal) TDPs.

However, more than 90% of the temporarily displaced persons have returned to their homes and the Federally Administered Tribal Areas (FATA) Secretariat stopped monthly stipends paid to the TDPs.

The Government since the imposition of the aforementioned taxes had collected a total sum of Rs25 billion.

Posted on: 2017-06-02T09:54:00+05:00