It added that keeping in view their profits for tax year 2024, the additional income tax liability would be Rs197 billion for 2025. The additional income tax was introduced in 2022 to encourage banks to lend to industries instead of extending safe loans to the government. Their ADR ranged from 21.9% to 39.7% that made them liable to pay 15% additional income tax. In case of five largest banks, their additional tax liability ranges from Rs13.7 billion to Rs25 billion. The Economy Alert stated that the banking sector was rigorously pursuing exemption from the additional income tax for 2025 onwards.

Source: The Express Tribune October 16, 2024 14:54 UTC