ISLAMABAD: Pakistan on Friday imposed a 10 per cent super tax on earnings of certain industrial sectors and on income of high net worth individuals.
Prime Minister Shehbaz Sharif announced to impose the 10 percent super tax on over 12 large industries and also on affluent persons with more than Rs 150 million annual income with a rate up to four percent.
Addressing the members of his economic team, he said the imposed taxes would be the “first step towards the country’s financial self-reliance”.
The prime minister said the 10 percent tax aimed at poverty alleviation would be imposed on industries and sectors including cement, fertilizers, steel, sugar, textile, oil and gas, LNG terminals, banking sector, cigarette, chemicals and beverages.
He said the individuals earning over Rs 150 million a year would pay one percent tax; those earning Rs 200 million will pay two percent, those over Rs 250 million income to pay three percent and the ones earning above Rs 300 million will pay four percent tax.
The prime minister 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.
PM Sharif pointed out that every year, an amount of around Rs 2,000 billion in the country was misappropriated through tax evasion.
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 information 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.
The prime minister hoped that with hard work and faith in Allah Almighty, the things would ease up.
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 expressed confidence that the measures would take Pakistan forward on the path of prosperity, progress and economic stability.