Imposition of super tax, sharp decline in stock market, loss of billions of rupees
The Pakistan stock market crashed after Prime Minister Shahbaz Sharif announced the imposition of super tax on major industries, with the 100 Index recording a decline of 1665.18 points.
The market remained smooth for 2 hours after the commencement of trading in the Pakistan Stock Exchange. However, after 11:30 pm, the index recorded a decrease of 1,598 points. At around 12 noon, the index had fallen by more than 2,161 points. As a result, the business was suspended.
According to the PSX rollbook, all trades are suspended for a specified period of time if the index goes up or down 5% above the level at which it was last closed and stays there for 5 minutes.
The stock market, on the other hand, saw its ups and downs after the worst slump, with 1665.18 points falling at the close of trading and the index closing at 41051.79 points.
During the entire trading day, the business recorded a decline of 3.9 percent while 216,48,617 shares were traded. Due to the worst downturn, investors had to bear a loss of over Rs.
According to economists, the government is imposing a 10 per cent super tax on all major industries, to which the market has reacted very negatively as the move will adversely affect the profits of the corporate sector. With 10% super tax, Pakistan’s corporate income tax and all other taxes combined will be more than 50%. Investor tax will increase by 55%. This tax rate is the highest not only in the region but also in the world and also the highest tax rate in the history of Pakistan
It may be recalled that the Prime Minister took the nation into confidence in the steps taken in the budget and focused on major industries including cement, steel, sugar, oil and gas, fertilizers, LNG terminals, textiles, banking, automobiles, chemicals, beverages and cigarettes. Announced 10% tax.
He said that history has shown that in every challenge and difficult situation the poor have sacrificed, today the people of status have to pay their dues. The cigarette industry sector pays 60% tax while 40% does not pay tax. It is the job of the state to collect the tax. The federal government has decided to impose a 10% ‘super tax’ on large industries to boost the economy.
Remember that a super tax is a tax that is levied by any government on an additional income to cover expenses.