Pakistan Plans to Slash Super Tax to 5%

Islamabad, August 10, 2025, 06:18 PM PKT — The government has unveiled an ambitious industrial policy, targeting a gradual reduction of the super tax rate for the manufacturing sector, planning to slash it to 5 percent within four years and eliminate it in the fifth year, contingent on a primary budget surplus, as per official sources. The federal cabinet is slated to approve this policy later this month, proposing to raise the minimum profit threshold for super tax from Rs 200 million to Rs 500 million, with a 10 percent super tax kicking in at Rs 1.5 billion, aiming to target only highly profitable firms (profits over Rs 10 billion).

Beyond tax reforms, the policy seeks to revive struggling industrial units, rationalize manufacturing tax rates, and establish a bankruptcy framework for banks, while easing credit access, protecting investments, and boosting export growth through supportive measures. Web context on industrial policies shows mixed success, while posts found on X reflect hope and caution—some see growth potential, others doubt fiscal feasibility. Critically, the narrative of “industrial revival” may mask budget risks—web data hints at past deficits, and X sentiment suggests distrust in sustained execution, pointing to potential challenges.