Last Updated on: 12th July 2023, 12:43 am
Govt of Pakistan Imposes Super Taxes On Industries And Individuals
Pakistan on Friday introduced a super-tax of 10% on the income of certain industries and on the income of wealthy individuals.
Prime Minister Shehbaz Sharif announced the introduction of the 10% super tax on more than 12 major industries, as well as on wealthy individuals with annual incomes over Rs 1.5 crore at a rate of up to 4%.
Speaking to members of his economics team, he said the taxes levied are the “first step towards the country’s financial autonomy.”
The prime minister said the 10 percent anti-poverty tax would be levied on industries and sectors such as cement, fertilizer, steel, sugar, textiles, oil and gas, LNG terminals, banks, cigarettes, chemicals, and beverages.
He said people earning more than Rs 150 crore a year would pay 1% tax; those who earn 200 million rupees pay 2%, those who earn more than 250 million rupees pay 3% and those who earn more than 300 million rupees pay 4% tax.
The prime minister said he has formed teams to promote tax collection through state institutions and through digital means. He said the move would help the country achieve economic stability and break the shackles of lending.
Prime Minister Sharif pointed out that an amount of around Rs 2 trillion is diverted into the country through tax evasion every year. He mentioned that 60% of the formal sector pays taxes but the remaining 40% of the economy has to enter the tax net.
He said taxes collected would be diverted to health, education, training, and information technology projects. For the first time in the country’s history, he said, a budget has been presented to help ordinary men, orphans, widows, and the poor.
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The Prime Minister hoped that with hard work and faith in Allah Almighty things would get better. The measures taken in the budget will allow the poor to overcome their financial difficulties, he added.
Prime Minister Sharif said the story is clear: the poor have always made sacrifices in the face of challenges, but now it is the moral obligation of the rich to rise up and contribute. He said he believed these measures would put Pakistan on the path of prosperity, progress, and economic stability.
Also Read: In Budget 2022-23, New Income Tax Slabs For The Employee Category Were Introduced
