Pakistan PM Sharif announces 10% ‘super tax’ on large-scale industries

The premier, however, said that the economic situation would not improve overnight once a deal with the IMF was signed

Pakistan Prime Minister Shehbaz Sharif on Friday announced a 10% “super tax” on large-scale industries like cement, steel and automobiles, a move he said was aimed at tackling spiralling inflation and saving the cash-strapped country from going "bankrupt."

High net worth individuals will also be subject to a "poverty alleviation tax," Mr. Sharif announced after chairing a meeting of his economic team on the federal budget for the next fiscal year 2022-23.

“Our first motive is to provide relief to the masses and to reduce the burden of inflation on the people and facilitate them,” Mr. Sharif said in a video message to the nation.

“Our second motive is to protect the country from going bankrupt," he said, adding that it has been devastated due to the "incompetency and corruption" of the previous Imran Khan-led government.

The sectors on which this “super tax” will be levied include cement, steel, sugar, oil and gas, fertilisers, LNG terminals, textile, banking, automobile, cigarettes, beverages and chemicals, he said.

Mr. Sharif explained that other motives included stabilisation of the economy.

“These aren’t just words, this is the voice of my heart and InshaAllah we will be able to achieve all these targets,” he said.