Govt to levy 10% super tax on big industries: PM Shehbaz

Big businesses include automobile, cigarette, cement, steel, sugar, LNG terminal, textile, fertilizers, banking, chemical and beverages: Hopes Pakistan will avert default: Says if IMF imposes no further condition, agreement with Fund to be finalized: Confesses people have to face difficulties due to tough economic decisions for short-term: Says Rs2,000bn being misappropriated every year through tax evasion

By: News Desk
Published: 11:59 AM, 24 Jun, 2022
Govt to levy 10% super tax on big industries: PM Shehbaz
Caption: TV grab.
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Prime Minister Shehbaz Sharif has said that the government will impose 10% super tax on 12 big industries in a bid to bring down poverty in the country, besides levying tax on affluent persons earning more than Rs150 million annual income with a rate up to 4%, reported 24NewsHD TV channel.

The premier was addressing an economic team in Islamabad on Friday. 

The industries on which 10% super tax to be levied also included automobile, cigarette, cement, steel, sugar, LNG terminal, textile, fertilizers, banking, chemical and beverages.

The premier said that his government took important decisions in the annual budget. “I want to take into confidence the people of Pakistan on the budgetary measures,” Shehbaz said adding that the government was making hectic efforts to steer people out of economic hardships.

He said in order to alleviate poverty, the government had decided to impose a 10% super tax on big industries

He said 1% tax would be levied on individuals earning Rs150 million annually; 2% on those grossing more than Rs200 million; 3% on those racking up more than Rs250 million and 4% on individuals earning more than Rs300 million annually.

He sounded optimistic when he said that Pakistan would surely avert default. He said the worst kind of corruption was committed during the previous PTI regime. He stated if the IMF did not impose another condition, then the agreement with the global lender would see the light. 

He informed that every year, Rs2,000 billion were stolen through tax evasion in Pakistan. 

PM Sharif said he had formed teams to boost tax collection with the help of organs of State institutions and through digital means. 

He said the step would help the country attain economic stability and push it out of the shakles of loans. 

He mentioned that 60 percent of the formal sector was paying taxes, however the rest of 40 percent economy needed to be brought into tax net. 

He said the collected tax would be diverted towards the projects of health, education, skilled training and informationa technology. 

For the first time in country’s history, he said, a budget had been presented to provide relief to common man, orphans, widows and poor.

He confessed that for the short-term, people would face difficulties due to tough economic decisions but he promised to provide relief to lessen the burden of sky-rocketing inflation. 

The measures taken in the budget will enable the poor overcome their financial challenges, he added. 

PM Sharif said the history was evident that the poor always sacrificed while facing challenges, but now it was the moral obligation upon the affluent to come forward and contribute.

He vowed to follow the vision of Quaid-e-Azam saying that ‘it is not the time to do politics, rather it’s time to save the state’. 

PM Shehbaz said after getting power, there were two options before them: Either to announce elections or take tough decisions. “We took the second option and took difficult decisions to save tattered economy of Pakistan”, he added. He touted that his government made brave decisions for the good of the country.

He said that he would not hoodwink the nation on economic situation which he proclaimed was in shambles. He held that the budget was aimed at saving people from the hardships of extraordinary circumstances. He enunciated that his government gave an economic plan in the budget. 

He mentioned the support of the leaders of allied parties in standing shoulder to shoulder with the government.