In a shocking move that left the nation reeling, the federal government hastily imposed a supertax the day after signing an agreement with the IMF. The burden of this sudden tax hike falls heavily on the people, affecting essential items such as cigarettes, tobacco, automobiles, airlines, cement, chemicals, breweries, petroleum, gas, medicines, textiles, and sugar.
Those earning between 35 to 40 crore rupees annually now face a staggering 6% supertax, while the tax rate for those earning between 30 to 35 crore rupees remains at 4%. The rates continue to decrease incrementally for lower income brackets, with individuals earning up to 15 crore rupees exempted from this tax.
Adding insult to injury, the government has also increased excise duties on vehicle registration for cars exceeding 2000 cc. The Finance Act has introduced fixed taxes on vehicle engine sizes, ranging from 6% for 2001 to 2500 cc vehicles to 10% for cars exceeding 3000 cc. These measures have not only burdened the citizens financially but have also escalated the cost of living, pushing the nation further into economic distress.
Furthermore, income tax rates have witnessed a substantial surge, hitting those already struggling to make ends meet. Individuals earning up to 24 lakh rupees annually will now face a 2.5% increase, making the income tax rate 22.5%. Additionally, an income tax of 1 lakh 65 thousand rupees will be levied. Similarly, individuals earning up to 36 lakh rupees will face a 25% income tax rate, with an additional 4 lakh 35 thousand rupees tax. For those earning over 60 lakh rupees, the income tax rate has surged to 35%, accompanied by an additional 10 lakh 95 thousand rupees.
These sudden and drastic measures have shattered the dreams of millions, leaving them in a state of despair. Families are struggling to cope with the escalating financial burden, while hope fades away in the face of this cruel reality. The nation, already plagued by economic hardship, now finds itself suffocating under the weight of unfair taxation. The government’s decision, taken without proper consideration for its citizens, has thrown the country into an even deeper crisis.