Bank profits likely to drop as govt considers imposing tax on foreign exchange income
Last updated on: 06 January,2023 10:33 am
Bank profits likely to drop as govt considers imposing tax on foreign exchange income
KARACHI (Web Desk) - Commercial banks are likely to have their earnings dropped by 4 to 11 per cent for 2022 if the government imposes a new tax on their foreign exchange income.
This has been revealed in a research report issued by Topline Securities.
According to the research report, a 10-30pc tax on banks’ foreign exchange income can fetch the government additional Rs12-36 billion.
That’s because the research house expects banks will post collective foreign exchange income of around Rs120bn for 2022.
Foreign exchange income of listed banks amounted to Rs89bn in January-September, which is almost 2.8 times of Rs32bn collected in the comparable period a year ago.
The latest number is much higher than the historical average, the research report said.