“The tax collection will be used to alleviate poverty in Pakistan and will be funded by high-income earners,” the prime minister said after meeting with the government’s economic team.
Pakistan’s Prime Minister Shehbaz Sharif today announced that he will impose a 10% poverty reduction tax (super tax) on large corporations to reduce the tax burden on the masses and improve economic security. This tax applies to 13 sectors of textiles, cement, steel, sugar, oil and gas, fertilizers, LNG, banks, automobiles, beverages, chemicals, airlines and tobacco.
“We will tax high-income earners so that the country as a whole can benefit from improvements in education, health, infrastructure, skills education and IT,” a Pakistani media report said. “This is an internal subsidy, and if you don’t act right away, a loan is your only option.”
“About 40% [the] The tobacco manufacturing industry is informal and does not pay taxes. “
Taxes worth Rs 2 billion will not be levied on the governor-general of the country due to the negligence of the authorities. “We use digital tools to end tax evasion,” he said.
Sharif emphasized that high-income earners should play their part in the growth of the country.
Treasury Minister Mifta Ismail explained that the one-year tax will help raise more than Rs 400 billion prior to contracts to resume significant funding from the International Monetary Fund (IMF).
He said temporary tax slabs from 10 percent to 40 percent will also be introduced into an individual’s annual income between Rs 150 million and Rs 400 million.
Fiber2Fashion News Desk (DS)
Pakistan’s Prime Minister Announces 10% Poverty Reduction Tax on 13 Industrial Sectors
Source link Pakistan’s Prime Minister Announces 10% Poverty Reduction Tax on 13 Industrial Sectors