Prime Minister Shahbaz Sharif has announced that the federal government is imposing 10% super tax on 12 Large Scale Industries. This will include the sugar industry, cement and steel industry, oil and gas sector, fertilizers, LNG terminals, Textile sector, banking sector, automobile sector, cigarettes, beverages, chemicals and airlines.
For many economists, this will have a trickle-down effect and ultimately burden will be shifted to poor people who are already burdened with heavy taxes, and high fuel and electricity prices.
While addressing his economic team, PM Shahbaz said this decision would be the “first step towards the country’s financial self-reliance”. He also said that such economic decisions are part of poverty alleviation program.
Besides this super tax, the Shahbaz government also announced the taxation on individuals earning over Rs 150 million a year or above. An individual earning over 150 million would pay 1% tax. Under this tax policy, those earning Rs 200 million will pay 2%, and individuals who are earning over Rs 250 million annually, are now subject to pay 3% and those earning above Rs 300 million will pay 4% of their income.