The business community has strongly reacted to the prime minister’s announcement of imposition of 10% super tax on large-scale industries at a time when the industrial sector has been fighting for survival amid high energy costs, rising fuel prices, escalating mark-up and unprecedented inflation.
The economy would crash in the wake of the move, as reflected in the stock market, which nosedived minutes after the PM proposed the “world’s highest tax”, it said.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Irfan Iqbal Sheikh, in the reaction sent to the media, observed that the unwise decision would push Pakistan further into economic crisis, not only rattling the economy but also increasing unemployment and inflation.
He cited the massive tax as the core reason behind the stock market’s plunge, as it would severely hurt corporate profits. He said that the bourse came under massive pressure across the board after PM Shehbaz Sharif imposed 10% super tax on industries for one year and now the corporate income tax and investor tax would exceed 50% and 55% respectively. “This is the highest not only in this region but in the history of Pakistan. In fact, it is one of the highest tax rates in the world,” he pointed out.
LCCI President Mian Nauman Kabir called for quick and serious steps to sustain the economic growth as the industry had been facing severe financial crunch amid delay in release of sales tax refunds, rising mark-up rates, soaring energy tariffs and worse power shutdowns.
He underlined the need for ensuring ease of doing business, lowering the cost of production, early release of tax refunds, and relaxing the import policy for industrial raw material.
Published in The Express Tribune, June 26th, 2022.
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