Super tax introduced on high income and banking sectors – Money

Following an agreement with the International Monetary Fund (IMF), the federal government started enacting the Finance Bill 2023 and imposed an extra Super Tax on income and also raised the petroleum levy from Rs 50 to Rs 55.

The government raised the threshold for the application of the Super Tax from Rs300 million to Rs500 million, and as a result, income exceeding Rs 500 million would now be subject to a 10 percent Super Tax.

Furthermore, banking companies with earnings exceeding Rs 300 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 face a 10% Super Tax on earnings surpassing Rs 300 million.

A total of 8% supertax will be applied on companies earning between Rs 400 million to Rs 500 million annually. The Super Tax rate has increased from 4% to 6% on income ranging from Rs 350 million to Rs 400 million. Similarly, there will be a 4% Super Tax on annual income between Rs 300 million to Rs 350 million, 3% on income between Rs 250 million to Rs 300 million, 2% on income between Rs 200 million to Rs 250 million, and 1% on income between Rs 150 million to Rs 200 million. However, the rate of Super Tax remains at zero for income up to Rs 150 million per annum.