Bank: Government abolished additional tax on low ADR; increased corporate tax rate by 5% - By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In a recent development, Federal Cabinet has approved the promulgation of an Income Tax Ordinance to implement changes in the Advance Deposit Ratio (ADR) for banks.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">According to newspapers, the proposed additional income tax of 10-15% on banks due to low ADR is to be abolished.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">However, the standard income tax for banks has been increased from 39% to 44% for the current tax year ending on Dec 31, 2024. For tax year 2026, starting from Jan 01 2025, the rate will go down to 43%. For tax year 2027 and onwards, the rate will be 42%, according to the draft ordi...