Banking firms will face a 42 percent tax increase
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To achieve the true tax potential, Finance Minister Miftah Ismail has proposed raising the current tax rate on banking companies from 39 percent to 42 percent.
The proposal was made in light of the banking sector"s extraordinary returns as a result of high interest rates and secure investments in public securities.
Previously, the banking sector"s income tax rate was 35%, with a 4% surcharge. The new budget announced a 3% increase, bringing it to 42 percent.
Miftah presented shifting the tax liability from the poor to the rich during his speech to the National Assembly (NA). He stated that, given the dire economic situation, the wealthy class should go ahead and fulfil its important national liability by paying the full share of its share based on its resources and income.
The time has finally come to shift the tax liability from the poor to the rich, and it is suggested that all individuals, including corporations and AOPS, earning $300 million or more pay a 2% tax.
It should be noted that the budget for fiscal year 2022-23 has been finalised and tabled for approval in the NA.
