Government Imposes 10% Super Tax on Large Scale Industries
Prime Minister Shehbaz Sharif has announced that his government will be imposing a 10% “super tax” on large-scale industries in a bid to shore up revenues for supporting the country’s poor amid rising inflation. Industries to be taxed include Cement, Steel, Sugar, Oil and gas, Fertilizers, LNG terminals, Textile, Banking, Cigarettes, Beverages, Chemicals, Airlines as well as Automobiles.
However according to Finance Minister Miftah Ismail, super tax is a “one-time tax needed to curtail the previous four record budget deficits”. Furthermore, high net worth individuals will also be subject to a “poverty alleviation tax.” Those whose annual income exceeds Rs 150 million will be subject to 1% tax; a 2% tax for Rs 200 million; 3% for Rs 250 million; and Rs 300 million will be taxed 4% of their income.
Prices of cars are set to witness another round of hikes amid massive depreciation in currency value. Proton has already announced its revised prices with other assemblers likely to follow suit. And now with “super tax” imposed on automobile sector, the impact will likely be transferred on the customers that will take prices of new cars to another level of lunacy. Analysts believe sales of local assembled cars will witness a massive dip during the second half of the year and with government making it tough for the companies to import CKD/ SKD kits, production is also expected to suffer.