ID :
167257
Thu, 03/10/2011 - 17:09
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Shortlink :
http://m.oananews.org//node/167257
The shortlink copeid
Bank's tax rate hike likely in budget- Alfalah Securities Limited
Karachi, March 10, 2011 (PPI): Federal Board of Revenue (FBR) has planned to increase the rate of income tax on the banking sector to 40% from the existing 35% in the upcoming budget 2011-12.
According to Alfalah Securities Limited, the proposal was made to increase the revenue collection as banks book gains through relatively higher spreads between the deposit and lending rates in Pakistan. The revenue body estimated that the spread in the banking sector ranges between 8 to 10% as interest rate given on bank deposits fluctuates between 5 and 10% while the lending rate is from 15 to 18%.
According to Alfalah Securities Limited, the proposal was made to increase the revenue collection as banks book gains through relatively higher spreads between the deposit and lending rates in Pakistan. The revenue body estimated that the spread in the banking sector ranges between 8 to 10% as interest rate given on bank deposits fluctuates between 5 and 10% while the lending rate is from 15 to 18%.
