Finance Minister Miftah Ismail has said that the 10 percent super tax was not solely applicable to all sectors; six percent of the tax would be applied to 13 specific sectors whereas four percent was applicable to all sectors.
In a message on social media, the finance minister has issued clarification regarding 10 percent super tax announced by the government. He stated that the tax of the specified 13 sectors would go from 29 percent to 39 percent after the increase; adding that it would be a one-time tax to curtail previous record budget deficits.
According to the finance minister, the imposition of additional one percent super-tax would be on the people who are earning more than Rs150 million; two percent tax on the people earning more than Rs200 million, three percent on people earning more than Rs250 million and four percent on those people who are earning more than Rs300 million annually.
The super tax imposed upon 13 sectors would generate additional Rs465 billion revenue and high net-worth individuals would be subject to poverty alleviation tax.
Earlier a day ago, Prime Minister Shehbaz Sharif had announced the imposition of a 10 percent super-tax on large-scale industries for revenue generation and supporting the poor.
PM, while addressing the nation, had announced 10 percent super tax upon oil and gas, cement, steel, LNG terminals, fertilizers, sugar, textile, beverages, chemicals and cigarettes.
The speech of PM coincided with a nose-diving stock exchange. Pakistan Stock Exchange (PSX) had witnessed abrupt selling pressure as KSE-100 index fell down more than 2,053 points or 4.8 percent in intraday trading.
Finance Minister Miftah Ismail yesterday said that the current financial year would be considered bad in the history of Pakistan due to significant budget deficit and a shift away from targets.
He said that the wide gap between expenses and resources caused 8.95 percent deficit in the old gross domestic product (GDP), adding that borrowing funds from others was a result of poor performance of the previous government.