Islamabad: The Federal Board of Revenue (FBR) recently submitted a proposal to impose a uniform tax of 15% on profits earned through money saved in banks; including foreign-currency accounts — a news source reported. In this regard, the tax will also be imposed on profits from loans — with the move expected to allow the tax authority to generate nearly PKR 26 billion during FY2020-21.
However, the State Bank of Pakistan (SBP) has opposed the move to tax foreign currency or Special Convertible Rupee accounts — as these are being used to invest hot foreign money in Pakistan.
Reportedly, a uniform tax imposed as a withholding tax has also been proposed by the banks as they have been facing issues in determining tax liabilities due to a number of factors.
The aforementioned proposals are a result of the government’s efforts to increase revenue, as it is aiming for a revenue collection target of PKR 5.1 trillion.
