The federal government, based on the Federal Board of Revenue’s (FBR) recommendation, has imposed a 40 percent tax on windfall income earned by banks.
This tax is applicable to windfall income generated from speculative rupee-dollar exchange business in the years 2021 and 2022. The decision was made during a meeting of the federal cabinet chaired by Caretaker Prime Minister Anwaar ul Haq Kakar.
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The move is aimed at taxing profits and gains from FX dealing, with the Finance Act, 2023 introducing a new section (99D) for this purpose. Additionally, the cabinet approved Bilateral Investment Treaties with Saudi Arabia and Qatar and exempted certain rules for the procurement of 200,000 metric tons of urea from the international market.
The cabinet also allocated a budget of 267.59 million rupees for the Jammu and Kashmir State property for the current fiscal year and instructed the preparation of a draft insurance of accession for the ratification of the Hong Kong International Convention 2009, ensuring safe and environmentally friendly ship recycling.Top of Form
