President Asif Ali Zardari has signed the Income Tax (Amendment) Ordinance, 2024, introducing significant changes to Pakistan’s tax structure.
The ordinance, which amends the Income Tax Ordinance, 2001, aims to increase revenue generation and promote transparency in the tax system.
The tax rate for banking companies has been increased to 44 per cent for the tax year 2025, which is expected to generate approximately Rs. 70 billion for the government by December 31, 2024.
The tax rate for banking companies will be reduced to 43 per cent in 2026 and 42 per cent in 2027 and subsequent years. The tax rate for small companies remains unchanged at 20 per cent, while the rate for all other companies is 29 per cent.
