The government has raised taxes on the already over-taxed banking industry in the budget for 2022-23 starting July 1. During the last financial year, the banks were being taxed at the rate of 35% plus 4% super tax i.e. What the government has actually done is that they have considered 39% (35% tax rate + 4% super) as the base tax rate and have then applied 10% super tax, thus making it 49%. Whereas, the government should have considered 35% as the base tax rate of last year and then should have applied the super tax of 10% to make it 45% and not 49%. Since banks were already paying 4% super tax, an additional 6% tax should have been further imposed to take it to 45%.
