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FBR sets deadline to collect 40pc tax from banks on windfall income, profits

12:22 PM | 23 Nov, 2023
FBR sets deadline to collect 40pc tax from banks on windfall income, profits
Source: File Photo

KARACHI – Pakistan's apex tax collection authority has announced a new tax measure to garner 40 percent additional tax from the banking sector on their windfall income.
 
A notification shared by the Federal Board of Revenue (FBR) said the federal government has specified the banking sector for the purpose of section 99D of the Income Tax Ordinance.

Under the new policy, a new method has been determined by which windfall income, profits and gains are required to be computed, and the rate of tax for the purpose of the said section 99D is 40 percent.

It said FBR fixed November 30, 2023 as date to complete the payment of additional tax. 

The notification said payment of the additional tax shall be made in the federal treasury through a prescribed challan or computerized payment receipt.

To clarify the new move, FBR cited example to show the application of the tax measure. The example is of banking firm that raked in Rs100 million from foreign exchange dealings in 2021, and its average income from such dealings for the past six years was Rs50 million.

In such case, its windfall income, profits and gains from foreign exchange dealings for 2021 is Rs50 million, and it needs to pay additional tax liability Rs20 million.

Daily Pakistan Global Web Desk

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Pakistani rupee exchange rate against US dollar, Euro, Pound and Riyal - 29 Feb 2024

Pakistani rupee remains stable against US dollar in the open market on February 29, 2024 (Thursday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.1 for buying and 282.35 for selling.

Euro currently stands at 303 for buying and 306 for selling while British Pound rate stands at 352 for buying, and 355.5 for selling.

UAE Dirham AED hovers at 76 whereas the Saudi Riyal saw slight increase, with new rates at 74.3.

Today’s currency exchange rates in Pakistan - 29 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.1 282.35
Euro EUR 303 306
UK Pound Sterling GBP 352 355.5
U.A.E Dirham AED 76 76.7
Saudi Riyal SAR 74.3 75.1
Australian Dollar AUD 181 183
Bahrain Dinar BHD 743.11 751.11
Canadian Dollar CAD 207 209.2
China Yuan CNY 38.82 39.22
Danish Krone DKK 40.69 41.09
Hong Kong Dollar HKD 35.7 36.05
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.1 2.18
Kuwaiti Dinar KWD 907.32 916.32
Malaysian Ringgit MYR 58.49 59.09
New Zealand Dollar NZD 173.05 175.05
Norwegians Krone NOK 26.36 26.66
Omani Riyal OMR 725.68 733.68
Qatari Riyal QAR 76.74 77.44
Singapore Dollar SGD 207 209
Swedish Korona SEK 27.04 27.34
Swiss Franc CHF 317.76 320.26
Thai Bhat THB 7.76 7.91

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