Govt to collect Rs 80 billion from super tax and Rs 120 billion from poverty alleviation tax

super tax

Prime Minister Shehbaz Sharif has announced that the coalition government looks forward to imposing a 10% super tax on large-scale industries, and that “tough decisions” have been made in order to protect the economy on budget 2022-23.

The Federal Board of Revenue is set to collect an estimated Rs 80 billion from super tax and Rs 120 billion from Poverty Alleviation tax which will be applicable on companies and individuals retrospectively. 

Addressing the nation, PM said that the coalition government has taken some “tough decisions” with regard to the federal budget for the next fiscal year 2022-23. “I want to brief the people about those decisions and the actual [economic] situation of the country,” he said.

“Our first motive is to provide relief to the masses and to reduce the burden of inflation on the people and facilitate them,” he explained.

The decisions made now will protect the country from bankruptcy, he vowed.

Read more: PM Shehbaz Sharif fills Economic Advisory Council with Pakistan’s billionaires

Moreover, the premier further said that other aims included stabilization of the economy and prosperity of the county. “These aren’t just words, this is the voice of my heart, and InshaAllah we will be able to achieve all these targets,” he maintained.

With regard to IMF program, Sharif commented: “If the IMF doesn’t put forward any other conditions, I am hopeful that we will be able to reach a staff-level agreement with them soon.”

Meanwhile, announcing the imposition of a 10% super tax on steel, cement, sugar, oil and gas, banking, textile, fertilizer, chemical, beverage, and automobile industries, he remarked it has been done to secure the common man from taxes.

“A 1% tax has been imposed on people earning over Rs 150 million, 2% on those earning over Rs 200 million, 3% on those earning over Rs 250 million and 4% on those earning over Rs 300 million,” he declared.

Meanwhile, former energy minister Hammad Azhar condemned the PM’s address and said, “Industry is already facing crippling costs due to rising prices of commodities and energy. This super tax will be priced in their balance sheets and passed on to the customers in many cases. Means even higher prices for the public.”

Besides, PTI leader Shahbaz Gill also criticized the government’s decision and said that previous Prime Minister Imran Khan increased the record of tax collection rather than taking such “cruel measures”.

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