PM intervenes to maintain 15% tax on bank profits

The 15% additional income tax on banks may remain in place after Prime Minister Shehbaz Sharif intervened on Thursday, directing authorities not to provide any relief to the banks. The premier’s intervention came as the government finalised new tax avenues that might be announced today (Friday) during the approval of the Budget 2024-25. The National Assembly is expected to approve the new budget and reveal new tax proposals, which are over and above the Rs1.5 trillion in taxes imposed on June 12th. At least two cabinet members confirmed to The Express Tribune that the premier intervened after widespread reaction against an attempt to provide tax relief to the banks. The banking industry has enjoyed exceptionally high profits due to a desperate borrower in the form of a cash-starved finance ministry.