FBR Sees Big Jump in Income Tax from Bank Deposits

Federal Board of Revenue (FBR) is celebrating a significant win on the tax collection front. They’ve raked in a whopping Rs 87 billion in income tax from bank depositors during the first ten months of the current fiscal year (2023-24).

Key Takeaways:

  • Impressive Growth: This represents a 22% increase compared to the Rs 71 billion collected during the same period last year.
  • Soaring Deposits: The surge in tax revenue is attributed to the record-breaking level of bank deposits in Pakistan.
  • Attractive Interest Rates: Higher interest rates implemented by the State Bank of Pakistan (SBP) have enticed people to save more at banks.
  • Banking Sector Boom: Bank deposits have reached a staggering Rs 28.42 trillion as of April 2024, reflecting a robust banking sector.
  • Depositor Confidence: The year-on-year growth of 21.3% in bank deposits highlights growing trust in the banking system.
  • SBP Policy Wins Praise: The central bank’s consistent 22% key policy rate is credited with attracting depositors.
  • Favorable Environment: Market analysts acknowledge the high-interest rates have made bank deposits an attractive investment option.
  • Financial Stability: The rise in deposits and tax revenue signifies increasing financial stability in Pakistan.
  • Positive Outlook: The FBR expects this trend to continue, bolstered by depositor confidence and a growing banking sector. This will strengthen the government’s revenue base and contribute to economic development.

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