Explainer: What is super tax?
June 24, 2022
As Pakistan’s foreign exchange reserves continue to deplete to $8 billion, the International Monetary Fund (IMF) “nod” appears to be an urgent priority of the government, Prime Minister Shehbaz Sharif Friday announced that an additional 10% super tax, also dubbed as “poverty alleviation tax” will be imposed on 13 major segments to augment tax collection.
While the government claims these “tough decisions” have been taken to protect the economy, the previous PTI-led government— which is now in the Opposition —feared that a "super tax” will be passed on to consumers.
Here's a list of 13 sectors on which 10% super tax will be imposed:
- Cement
- Steel
- Banking
- Airlines
- Textile
- Automobile assembling
- Sugar mills
- Beverages
- Oil and gas
- Fertiliser
- Cigarettes
- Chemicals
- LNG terminals
To further understand what a super tax is and how will it impact the industries and the masses, Geo.tv reached out to analyst Tahir Abbas.
