Shaukat Tarin says Super Tax to destroy economy, unleash storm of inflation
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Former finance minister Shaukat Tarin has hit hard at incumbent rulers for levying 10% Super Tax on industry warning that it will trigger an avalanche of inflation and all small factories will be shut down, reported 24NewsHD TV channel.
Addressing a presser on Friday, the former finance minister lashed out at the government for putting 10% levy saying it would result in closure of many industrial units. He was of the view that the tax would destroy small trader and it would unleash a storm of inflation in the country.
He was of the view that if the government imposed fixed tax, then the big fish would have dodged it.
He lamented that the government had put Rs43 million data in the dustbin saying that it was not the previous regime but the new rulers were taking the country towards bankruptcy.
Tarin said if the PTI were in power, they would have got oil from Russia at cheap rates.
PTI Secretary General and former development minister Asad Umar also lambasted the coalition government for levying Super Tax saying that it would crush the economy, exacerbate inflation and joblessness in the country, besides increasing imports and sliding the country into economic disaster.
Miftah Mian,with an overseas PhD, should have enabled you to acknowledge your own approved Economic survey which documents stellar PTI performance in the last two https://t.co/uJuVUKm6n1 refuse to accept it as it exposes your https://t.co/xmC7X4duMk does not believe you.— Shaukat Tarin (@shaukat_tarin) June 24, 2022
Today, Prime Minister Shehbaz Sharif has said that the government will impose 10% super tax on 12 big industries including automobile, cigarette, cement, steel, sugar, LNG terminal, textile, fertilizers, banking, chemical and beverages.
The premier further said that affluent individuals will also be subject to a "poverty alleviation tax". 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.
Umar in his press conference said: "This [super tax] is an attack on those sectors of the economy that have the potential of growth [...] that can increase production and livelihood [...] and this is the reason why the market lost 2,000 points during Shehbaz Sharif's speech.
"You can clearly figure out from this how dangerous and fatal the budget is for the economy," the former federal minister added.
Another PTI leader and former energy minister Hammad Azhar denounced the government’s Super Tax move saying it would further squeeze the formal sector of economy and the traders would pass on the tax to the customers in the shape of higher prices of commodities.
Industry is already facing crippling costs due to rising prices of commodoties and energy. This super tax will be priced in their balance sheets and passed on to the customers in many cases. Means even higher prices for the public. https://t.co/4op4vlgKg1— Hammad Azhar (@Hammad_Azhar) June 24, 2022