Islamabad:
President of Pakistan, Asif Ali Zardari, has approved the Income Tax Amendment Ordinance 2024.
Under the new ordinance, the standard income tax rate for banks has been increased from 39% to 44%. The ordinance is effective immediately.
The amendment also removes the additional 10-15% tax on profits banks earn from lending loans, which was previously imposed as an incentive to lend.
The implementation of this ordinance is expected to generate an additional revenue of 60 billion Pakistani rupees for the federal government in 2025. Moreover, the tax rate for banks will gradually decrease by 1% annually.
For the 2026 tax year, the tax rate for small companies will be 20%, while the tax rate for other companies will be set at 29%. The Income Tax Amendment Ordinance was approved by the federal cabinet on December 27.
