Pakistan, Banks Agree on Tax for Advance-to-Deposit Ratio

The government and banks have reached an agreement on the imposition of ADR, or advance-to-deposit ratio, tax on banking incomes, Pakistan’s Prime Minister House says in statement after cabinet meeting.

• Statement cites Prime Minister Shehbaz Sharif’s address to the federal cabinet
• Says the ADR tax would generate 70 billion rupees revenue in a year and around 240 billion rupees in three years
• The banks in recent years had earned windfall profits due to high interest rates; the matter will be approved by the cabinet before a final presidential nod: statement
• NOTE: CORRECT: Pakistan Banks Oppose ADR Tax on Balance ...