Pakistan Banks: Government collected wind fall tax from banks; most banks have already provided - By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The Sindh High Court (SHC) has ruled in favor of the federal government and as a result banks have paid tax on windfall income under section 99D of the income tax ordinance for the period for year 2021 and 2022.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">To recall, through SRO 1588 (1)/2023, government specified banking companies for the purpose of Section 99D with the tax rate of 40%. The formula for the tax liability under the windfall gain was differential of the FX income during 2021-2022 from previous six years average FX income. The excess profit through this formula was subject to 40% tax.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We b...