- Assures economic conditions, confidence in economy will improve
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced the levy of a 10 percent “super tax” on large-scale manufacturing (LSM) industry with the aim to cushion the blow of “unbridled inflation.”
“This super tax will help shore up revenue generation, leading to poverty alleviation besides supporting the burden of inflation on the masses.”
Prime Minister Shehbaz Sharif made the announcement through a video message after chairing a meeting of his economic team in Islamabad here on Friday.
The Prime Minister informed that teams will be formed to collect this tax after the passage of budget bill. It is to be noted that the “super tax” has been imposed on industries include: cement, steel, sugar, oil and gas, fertilizer, banks, automobiles and cigarette.
In his address, the premier elaborated that the incumbent coalition government had to take the “tough economic” decisions to avoid default and revive economy.
PM Shehbaz further said that the additional revenue to be generated through this tax would be utilized for strengthen public services in the education and the health sector, adding that such policies were the need of the hour to reduce reliance on foreign loans.
“That is what we call economic freedom; that is what we call coming out of the shackles of slavery of borrowing money,” he furthered.
Similarly, the premier announced the imposition of another tax on those citizens who earn an annual income of Rs150 million or higher.
According to the prime minister, those earning Rs150 million will have their tax rate increased by 1%. Those earning Rs200 million will have their tax rate increased by 2%. Those individuals earning more than Rs250 million will have their tax rate increased by 3% and those earning more than Rs300 million will have their tax rate increased by 4%.
“The rich would have to do their part to alleviate the burden of inflation on the poorer segments of society. The affluent class must come forward and play their part for making Pakistan a prosperous and progressive state,” the premier underscored while announcing the tax. Shehbaz Sharif further stated that the budget for 2022-23 would be the “first in history” which lessen the burden on the poor.
PM Shehbaz criticized the rich for evading tax, stating that it was the responsibility of all segments of the society to pay what owe to the country for a bright future of the next generations.
“This state belongs to everyone and they will have to play due to role for its sovereignty, prosperity and progress.”
The premier informed that revenue collection teams have been formed and assistance will be sought from all provincial and federal institutions. He also said that modern technology and digital tools would be employed to aid revenue collection.
The premier stated that the prevailing economic conditions warrant drastic measures to reduce the burden of inflation on the masses. “The incompetence and corruption of the former ruling Pakistan Tehreek-e-Insaaf (PT) government had destroyed the economy and today the entire nation is paying through the nose for their (PTI leadership)’s misdeeds”, PM Shehbaz regretted.
In his address, the premier assured that economic conditions would improve and confidence in the economy would recover.
With regard to the $6 billion bailout package from the IMF, PM Shehbaz stated that negotiations with the financial watchdog had been successful and if the body had no more requirements, the tranche would be resumed.
“We have taken decisions that will prove difficult in the short run but in the long run they will pay off,” he added.
The premier highlighted that the coalition government had two options initially; to call early elections or to tackle the economy. He remarked that elections would have been the easier option, however, “history would not forgive us”.
“It was not to save the government by rather the country,” he added.
