Super tax imposed on high income, banking sectors
Business
Super tax imposed on high income, banking sectors
LAHORE (Web Desk) - The federal government has started enacting on the Finance Bill 2023 and imposed an extra Super Tax (ST) on income and also raised the petroleum levy from Rs50 to Rs55 per litre.
The move came after the government and the International Monetary Fund (IMF) reached an agreement.
The government raised the threshold for the application of the ST from Rs300 million to Rs500 million, and as a result, income exceeding Rs500 million would now be subject to a 10 percent Super Tax per annum.
Furthermore, banking companies with earnings exceeding Rs300 million and major sectors, including petroleum, gas, pharmaceuticals, sugar, textiles, fertilizers, iron, steel, LNG terminals, oil marketing, oil refining, airlines, automobiles, beverages, cement, chemicals, cigarettes, tobacco, and interest income, will also pay a 10% Super Tax on earnings above Rs300 million.
A total of 8pc ST will be imposed on companies earning between Rs400 million to Rs500 million annually.
The ST rate increased from 4pc to 6pc on income between Rs350 million to Rs400 million.
Likewise, there will be a 4pc ST on annual income between Rs300 million to Rs350 million, 3pc on income between Rs250 million to Rs300 million, 2pc on income between Rs200 million to Rs250 million, and 1pc on income between Rs150 million to Rs200 million will be levied.
Nevertheless, the rate of ST remains at zero for income up to Rs150 million per annum.
