ISLAMABAD: The government on Saturday decided to reduce the super tax rate for the manufacturing sector in its new industrial policy.
Under the new policy, the super tax rate for the manufacturing sector will be gradually reduced to 5 percent over the next four years. In the fifth year, the super tax will be eliminated altogether, provided that a primary budget surplus is achieved.
According to sources, the federal cabinet is expected to approve the new industrial policy later this month. It is proposed that the minimum threshold for super tax in the manufacturing sector be increased from Rs 200 million to a higher amount.
Call to apply super tax only to corporations with profits over Rs10bn’
The draft policy suggests increasing the threshold from Rs 200 million to Rs 500 million. Additionally, to impose a 10 percent super tax, the threshold is proposed to be raised further — from Rs 500 million to Rs 1.5 billion.
The policy also includes provisions for the revival of sick industrial units, rationalization of tax rates for the manufacturing sector, a bankruptcy framework for banks, and easy access to credit facilities for manufacturers.
The new industrial policy will also ensure investment protection, aim to boost exports from the manufacturing sector, and introduce several other supportive measures.
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