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10% Super Tax crashes sock market, 100-index loses 2000+ points

The benchmark KSE-100 index opened in the green in line with its positive trend a day earlier; however, it soon plunged a massive 2,053.35 points or 4.81%. The market was trading at 40,663.62 points as of 12pm.

Px11-013 KARACHI: Feb11 – Brokers look at digital screen during bearish trend at Karachi Stock Exchange. ONLINE PHOTO by Sabir Mazhar

ISLAMABAD: Soon after the announcement of 10 percent super tax for the mega companies, the Pakistan Stock Exchange (PSX) Friday witnessed a bloodbath. The KSE-100 index of the PSX lost more than 2000 points immediate after Prime Minister Shehbaz Sharif announced “tough decisions” taken by the government in the federal budget for the upcoming fiscal year 2022-23.

The benchmark KSE-100 index opened in the green in line with its positive trend a day earlier; however, it soon plunged a massive 2,053.35 points or 4.81%. The market was trading at 40,663.62 points as of 12pm.

Prime Minister Shehbaz Sharif has announced imposition of 10 percent super tax on large-scale industries and companies in Pakistan with effect from July 1, 2022.

The mega companies are banks, automobile, textile, cigarette manufacturing, steel, cement factories, fertiliser manufacturing units, LNG terminals, and sugar mills, etc.

Meanwhile, rich people earning more than 200 million a year will pay two percent super tax, and those earning beyond 250 million per annum will pay higher tax rate, which will be utilised to combat poverty and stabilise national economy, PM added.

Prime Minister Shehbaz Sharif stated this in his nation-wide address on Friday morning with the aim to take them into confidence over the “tough decisions” taken by the coalition government in the federal budget for the next fiscal year 2022-23.

Addressing the nation, after a meeting with his economic team, the premier said that the coalition government has taken some “tough decisions” regarding the federal budget for the next fiscal year 2022-23. “I want to brief the people about those decisions and the actual [economic] situation of the country,” he said, highlighting the two major reasons behind these decisions.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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