The government, in its new industrial policy, has decided to reduce the super tax rate for the manufacturing sector.
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, this tax will be completely abolished, provided that a primary budget surplus is achieved.
According to media reports, the federal cabinet is expected to approve the new industrial policy by the end of this month. It has been proposed to raise the minimum threshold for imposing super tax on the manufacturing sector from 200 million rupees to a higher level.
The draft policy proposes increasing this threshold from 200 million rupees to 500 million rupees. Furthermore, it recommends raising the threshold for imposing a 10 percent super tax from 500 million rupees to 1.5 billion rupees.
The policy also includes provisions for the revival of sick industrial units, a reasonable reduction in the tax rate for the manufacturing sector, an insolvency framework for banks, and improved access to credit facilities for manufacturers.
The new industrial policy also aims to ensure investment protection, increase exports from the manufacturing sector, and introduce several other supportive measures.
