The federal government on Friday announced its decision to impose a 10% “super tax” on as many as 13 big industries “for the time being” in order to alleviate poverty.
“It’s the job of the state to tax the rich and give to the poor,” Prime Minister Shehbaz said after the economic committee meeting in Islamabad.
The premier in his long recorded speech briefed the nation about the decisions of the economic team. He apparently described the new levies as “poverty alleviation tax”.
“We have chosen ‘state over politics’,” Shehbaz said, as he stressed the need for having a national dialogue on economy.
13 sectors to pay 10% ‘super tax’
- LNG terminal
- Banking sector
Such sectors, which have an annual income of Rs300million, would pay 10% super tax. PM Shehbaz had asked the affluent class of the country to support the poor people and become generous under unusual circumstances.
The premier said that 60% of the formal sector in the cigarette industry was paying taxes, however, the 40% of the informal sector was not part of the tax net. “It is the fault of the state of Pakistan.”
The government would make such policies to stop tax evasion. “Around Rs2,000 billion worth of amount annually in different ways is evaded,” he said, adding that the state institutions, including the prime minister, should have failed to fulfil such responsibility.
More taxes for annual income of over Rs150m one year
- 1% tax on people having an annual salary of over Rs150 million
- 2% tax on people having an annual salary of over Rs200 million
- 3% tax on people having an annual salary of over Rs250 million
- 4% tax on people having an annual salary of over Rs300 million
Every institution and the people have to work together for a prosperous Pakistan, the premier said.
“It is never too late.” PM Shehbaz announced that he has formed a committee after the budget and it would do everything in its domain to collect tax.
“Digital tools will be used to help the common man,” he said, “It’s a cross-subsidy from rich to the poor people.”
He called for breaking the “wall of poverty and hate” for developing the country.