ByIslamabad, Pakistan: The federal cabinet, led by Prime Minister Shehbaz Sharif, has approved new measures to increase revenue by taxing additional profits of Rs. 70 billion or more earned by banks. The decision was formalized on Friday through the approval of two Presidential Ordinances.
Income Tax Ordinance for Banks
Under the newly approved Income Tax Ordinance, tax authorities are empowered to impose higher taxes on banks earning substantial additional profits. This measure is part of the government’s broader strategy to boost revenue collection and address fiscal challenges.
The initiative is expected to generate significant revenue, helping bridge the gap between tax collection targets and current economic realities. The ordinance underscores the government’s focus on ensuring that high-earning financial institutions contribute fairly to the national exchequer.
Implications
These steps reflect the government’s dual approach to revenue enhancement and regulatory reform. The increased taxation on banks’ profits targets untapped revenue streams, while the madrasa registration framework aims to bring transparency and standardization to religious educational institutions.
The measures are expected to contribute to fiscal stability and strengthen the regulatory environment, aligning with the government’s broader economic and social policy objectives.
