Caretaker cabinet approves levy of 40% tax on banks windfall profit of 2021-22

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Caretaker cabinet approves levy of 40% tax on banks windfall profit of 2021-22

The federal cabinet agreed on Wednesday to a 40% tax on any extra money that banks make from foreign exchange deals in 2021 and 2022.

The Federal Board of Revenue (FBR) told the cabinet meeting led by Caretaker Prime Minister Anwaar-ul-Haq Kakar that a 40% tax should be put in place.

The Finance Act of 2023 added a new section 99D to the Income Tax Ordinance 2012, which says that banks must pay taxes on their profits and gains that come in out of the blue.

Authorities in Pakistan and staff from the International Monetary Fund (IMF) agreed on the first review for the second tranche of the staff-level agreement under the $3 billion loan plan. This happened before the agreement was signed.

In all areas, the IMF mission, which was led by Nathan Porter, and the Pakistani economic team came to an agreement.

The caretaker finance minister of Pakistan, Shamshad Akhtar, led the group. The delegation also included the governor of the State Bank of Pakistan (SBP), Malik Amjed Zubair Tiwan, chairman of the FBR, and officials from the energy and finance ministries.

 

 

 

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