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In Pakistan, it was announced to impose a tax of 10 percent on big companies and 2 to 4 percent on the rich. After which the benchmark of Pakistani stock market broke more than 2000 points.
The government of Pakistan has decided to increase the tax burden on the industry to avoid the economic crisis. The government has announced the imposition of super tax on big companies and the rich. this step Pakistan ,Pakistan) is a big blow to the industry, which is already under pressure due to the impact of Corona, dwindling margins due to costly commodities and global recession. For this reason, along with the announcement of the government, the stock market of Pakistan (stock market) has crashed and the major index has seen a fall of 5 percent. After the announcement, Prime Minister Shahbaz Sharif said that the government has to take tough decisions to deal with the dire situation and to reduce the pressure on the poor, tax is being imposed on the rich.
What is the new tax rules
The Prime Minister of Pakistan announced that the government would impose a 10 percent super tax on large scale companies. Industries that will be taxed include cement, steel, sugar, oil and gas, fertilizer, LNG terminals, textiles, banking, auto, cigarettes, beverages and chemicals. Big companies in these sectors will have to pay more tax than ever before. Along with this, it has also been announced to impose tax on the rich. According to the government, HNIs whose annual income exceeds 150 million Pakistani rupees will be subject to a poverty alleviation tax of 1 percent. Along with this, income above Rs 20 crore will attract tax of 2 per cent, income above Rs 25 crore at 3 per cent and income above Rs 30 crore at 4 per cent. Pakistan is taking this decision for two reasons. The first reason is to fill the empty treasury. On the other hand, the financial institution around the world has to show that the government is taking serious steps to recover the economy. So that he can get the necessary loan facility.
Huge decision on stock market
The decision to impose tax on the industry hoping for relief from the government has weighed heavily on the stock market. Within minutes after the announcement, there was a sharp decline in the market and the benchmark KSE 100 recorded a loss of more than 2000 points. Which is equal to 4.8 percent, immediately after that trading in the market had to be stopped. According to the rules of the Pakistan Stock Exchange, trading is stopped if the benchmark is 5 percent above or 5 percent below the previous closing levels and remains at these levels for 5 minutes. Dawn quoted market experts as saying that this high tax is sure to have a bad effect on the profits of the companies, due to which the selling has been seen.