ISLAMABAD:- Prime Minister Shehbaz Sharif has announced to impose 10 percent super tax on 13 different large-scale sectors including cement, steal, suger, textile and banking etc to address the economic problems facing the country and reduce poverty.
According to the plan, the government will impose supper tax on Cement, Steel, Banking, Airlines, Textile, Automobile assembling, Sugar mills, Beverages, Oil and gas, Fertilizer, Cigarettes, Chemicals and LNG terminals.
While addressing to the nation, the premier said that the coalition government has taken some tough decisions regarding the federal budget for the next fiscal year. “I want to brief the people about those decisions and the actual situation of the country,” he said, highlighting the two major reasons behind these decisions.
“Our first motive is to provide relief to the general public and to reduce the burden of inflation on the poor people and facilitate them,” he said.
“Our second motive is to protect the country from going to bankrupt,” he said, adding that it has been devastated due to the “incompetency and corruption” of the previous government.
The premier proposed one per cent tax on the income of those earning more than Rs 150 million per annum, 2 percent tax on those earning more than Rs 200 million, 3 percent tax on those earning more than Rs 250 million and four per cent tax on those earning more than Rs 300 million.
The Prime Minister said that rich people should go ahead and play their role. In Pakistan, the poor have always sacrificed. Now it is the turn of the rich to make sacrifices. I hope “the rich peoples will join hands in struggle to bring back the national economy from bankruptcy from the bottom of their hearts. “
“We will formulate a policy to prevent tax evasion,” he said. In Pakistan, the tax evasion has been reached to RS2000 billion per year. The state institutions responsible for tax collection have so far failed to collect this money.
The Prime Minister said that “solidarity is needed to solve the problems of the country and this requires the Charter of Economy and the Charter of Democracy.”
Regarding the International Monetary Fund (IMF) programme, he said: “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.”
He further added that the coalition government has taken some “daring” decisions after mutual consultations to provide relief to the people; however, the premier admitted the nation will witness difficulties in the short-run.
“We will steer out of the economic crisis because of these decisions and step onto the path envisioned by Quaid-e-Azam,” he said, adding that after coming into power, the coalition government had two options; to call elections afresh or to protect the “devastating economy” of the country by taking some tough decisions.
“The first way out was easy; however, our [coalition government] conscience did not allow us to do something which would impact the country as the time was to protect the state and not politics,” he stated.
The prime minister urged the affluent sections of society to come forward and share the burden.
He said that this is the first budget in the history of Pakistan in which the government has provided an “economic vision”.