‘Super tax’: PSX crashes as KSE-100 index sheds over 2000 points

Trading halted at PSX as KSE-100 crashed following Prime Minister Shehbaz’s announcement of 10% tax on large-scale industries. 

Karachi: The trading at Pakistan Stock Exchange (PSX) halted on Friday after KSE-100 index lost over 2000 points within minutes of Prime Minister Shehbaz Sharif announcing a new 10% ‘super tax’ on large-scaled industries. 

According to PSX Rulebook, if the KSE 100 index falls 4.5pc or more, trading is halted for 45 minutes. 

The PSX halted trading today after the market crashed following Prime Minister’s announcement of a 10% tax on large-scale industries;  upto 4% on high-income individuals. 

Within the first two hours, the bourse was under severe selling pressure from the opening bell, with the KSE-100 index losing 1,598 points and sinking to 41,100. 

As of 12pm, the benchmark KSE-100 index was down 4.81%— being traded at 40,661.59, a loss of 2,055.38 points.   

Earlier in the day, the government decided to impose "poverty alleviation tax" on large scale industries of the country.

This was announced by Prime Minister Shehbaz Sharif in a video message after chairing meeting of his economic team in Islamabad. 

The Premier said teams will be formed to collect tax after the passage of budget bill.

Shehbaz Sharif said tax has been imposed on industries include cement, steel, sugar, oil and gas, fertilizer, banks, automobiles and cigarette.   

He said the government is proposing four percent poverty alleviation tax on the people who earn 300 million rupees annually, while three percent who has annual income over 250 million rupees, two percent on people earning over 200 million and one percent tax will be imposed on the people who earn over 150 million rupees annually.

The former Punjab Chief Minister expressed the hope that soon Pakistan will come out of the economic crisis and announced to provide relief to the poor segment of society.