Prime Minister Shahbaz Sharif’s committee is expected to modify the methodology for levying additional taxes on low advance-to-deposit ratios (ADR), according to analysts on Monday.
According to The News, the calculation may transition to an annual average rather than the year-end result on December 31, 2024, which experts say could provide greater justice and balance.
It is possible that the State Bank of Pakistan (SBP) will use an updated methodology for determining the ADR, which would include all deposits and exclude some advances.
As the government steps up its attempts to boost tax collection from banks based on income produced by government assets, these adjustments are expected.
The prime minister formed a committee to deal with the matter last week.
