FBR considers rise in banks’ tax rate to makeup revenue losses: – Alfalah Securities Limited

Karachi: Federal Board of Revenue (FBR) is considering raising the tax rate of Banks by 5% to 40% from existing 35%.

According Alfalah Securities Limited, to though, the corporate tax rate of other sectors is proposed to be reduced to 32% in the upcoming federal budget FY13. The increase in tax collection from banks, if approved, would mitigate a portion of the decline that would arise due to decline in corporate tax rate. However, the higher tax rate on banks would hurt the profitability of the banking sector.

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