Stock market crashes following PM announcement of slapping 10 percent super tax on large industries

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Stock market crashed following the announcement by Prime Minister (PM) Shahbaz Sharif for slapping super tax on large scale industries.

The KSE-100 Index plummeted over 2,000 points. Immense pressure was witnessed in sale of shares in Pakistan stock exchange. The bourse stayed flat until two hours after the opening bell. However, at 11:40am, the market witnessed a steep dip with the KSE-100 losing 1,598 points and sinking to 41,100. At 12pm, the benchmark KSE-100 index was down 2,053 points or 4.8pc.

Head of research inter market securities Raza Jaffri said “ we heard the government is going to slap 10 percent super tax on all large industries.

Upon it the market stock market reacted negatively because this step will affect adversely the profit of corporate sector.

He further said with imposition of 10 percent super tax Pakistan corporate tax including income tax and other tax will surpass 50 percent.