The budget will bring a 10 percent super tax on major industries and a progressive tax on the income of those earning more than PKR 150 million
By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif Friday said the new budget will bring a 10 percent super tax on major industries and a progressive tax on the income of those earning more than PKR 150 million, with the proceeds being spent on poverty alleviation measures.
In a televised address after chairing a meeting of his economic mangers ahead of the Finance Minister’s wrap-up speech on budget in the national assembly, the PM said all major industries will be subject to the super tax including cement, sugar, steel, oil and gas, textile, banking, automobiles, tobacco, chemical, and beverages.
Besides, the super-rich among us will pay at a progressive rate commensurate to their incomes. Its rate will be 1 percent on the annual income of PKR 150 million, 2 percent on PKR 200 million, 3 percent on PKR 200 million, and 4 percent on PKR 400 million.
PM Sharif voiced his firm commitment to eliminate tax evasion in tobacco industry, which he said was responsible for evading billions of rupees in taxes. According to rough estimates, the sector evaded PKR 2000 billion in taxes this year.
Sharif said the authorities had constituted special teams to discover and plug tax leakages with the help of all institutions and equipped with modern technology.
“If we collect PKR 100 with help of this super tax then this money will be used for subsidizing the poor”, the PM said. He asserted this was the first national budget that brought a vision to the economy of the country.
“It is time to stand up and face all difficulties”, he said. “It requires rendering sacrifices. Everyone will have to contribute.”
The man heading up the Pakistan Democratic Movement (PDM) coalition government said his cabinet had taken important decisions. “The previous government committed major corruption as their delayed decision brought economy on the brink of collapse. Now Pakistan will come out from the economic morass.”
He said that the International Monetary Fund (IMF) agreement was a matter of time unless some more conditions surfaced. He said that the Fund’s conditions had been met. He admitted there would be difficulties in the short term.
“Three were two courses in front of us”, the PM said. “The first was to go towards elections and the second one was to take difficult decision. The first way was easy one to get political gains but it would be no service to the nation.
“The national leadership decided to save the state instead of saving our politics. It was decided that the difficult decisions would be made.”
It was first budget which aimed at making Pakistan stronger, he said and added that it was aimed at saving the poor segments of the society. He said that the budget would aim at providing relief to the masses while the rich and affluent class would have to sacrifice.
Citing the example of the state of Madinah where the Ansar of Madinah sacrificed for the migrants from Makkah, he said it was time for the rich among us to likewise contribute to the welfare of the poor people of Pakistan.
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