Bank profits likely to drop as govt considers imposing tax on foreign exchange income
Business
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.
