Super tax: PTI slams government for ‘taxing those already taxed’

The opposition on Friday slammed the coalition government for imposing a “super tax” on large-scale industries, saying the measure would “reverse the pace of industrialisation” and ultimately mean higher prices for consumers at a time when inflation was the first. is increasing ever since.

In an address to the nation today, Prime Minister Shahbaz Sharif announced 10 per cent duty on sectors including sugar, oil and gas, cement, steel, airlines, fertilisers, LNG terminals, textiles, banking, automobiles, cigarettes, beverages and chemicals.

High-net-worth individuals would also be subject to a “poverty alleviation tax.” Those whose annual income exceeds Rs 15 crore will be taxed at 1 per cent; 200 million, for 2pc; Rs 250 million, 3pc; And Rs 30 crore will be taxed at 4 per cent of their income.

new measures triggered a Dip On the Pakistan Stock Exchange (PSX), which crashed after the benchmark KSE-100 index lost over 2,000 points or 4.8pc in the morning session.

In his speech, PM Shahbaz had said that the decision was taken to protect and support the poor section from backbreaking inflation.

PTI, which was the single largest party in the National Assembly before resigning en masse from the lower house in April, disagreed with the premier’s assessment, claiming that the measures would burden the public in the form of rather high prices.

Former federal minister and PTI leader Hammad Azhar said the super tax would mean “taxing what is already there even more” and “squeezing the formal sector of the economy”.

“The economy is in shambles and at this point in time such a measure will reverse the pace of industrialization generated by PTI,” he said.

Azhar highlighted that the industry was already facing crippling costs due to rising commodity and energy prices. “This super tax will be priced in their balance sheet and in many cases passed on to customers. This means an even higher price for the public.”

Former Information Minister Fawad Chaudhry said that the failure of PSX shows how much trust the country has in the Shahbaz-led government.

“The economic policies of the government are making Pakistan bankrupt. It is in Pakistan’s interest to get rid of this government,” he said.

Meanwhile, former Finance Minister Shaukat Tarin simply said that the market no longer believes in the PML-N government.