Pakistan's cabinet approves a new tax ordinance raising the banking sector's tax rate to 44%.

Pakistan's federal cabinet has approved a new tax ordinance aiming to increase the banking sector's tax rate from 39% to 44%, expected to generate an additional Rs70-75 billion by December 2024. This change replaces the current Advance Deposit Ratio calculation with fixed maximum slabs. The ordinance awaits the President's approval. The move is also intended to reduce the tax burden on banks, which previously faced a 15% additional tax on profits from lending to the government.

3 months ago
4 Articles

Further Reading