Islamabad, March 21, 2025 – The Federal Board of Revenue (FBR) has successfully collected Rs 11.48 billion in windfall tax from banks operating in Punjab, following the Lahore High Court’s (LHC) decision to lift a stay order that had previously delayed tax recovery.
According to an official statement released on Friday, seven banks in Punjab have now deposited the due windfall tax into the national treasury. The breakdown of individual contributions is as follows:
• MCB Bank: Over Rs 3.48 billion
• Allied Bank: Over Rs 2.95 billion
• Bank AL Habib: Over Rs 2.94 billion
• Soneri Bank: Over Rs 1.02 billion
• Bank of Punjab: Rs 870.2 million
• MCB Islamic Bank Limited: Rs 149.4 million
• Punjab Provincial Cooperative Bank Limited: Over Rs 52.3 million
With this latest collection, the FBR has made substantial progress in its windfall tax campaign, bringing the total amount deposited into the national exchequer to Rs 34.5 billion in just four weeks.
This development follows a similar ruling by the Sindh High Court (SHC), which lifted its stay order on banks in Sindh three weeks ago. As a result, within 24 hours, banks had deposited Rs 23 billion in windfall tax into the FBR’s account.
The windfall tax, introduced in 2023 under Section 99D of the Income Tax Act, was implemented to capture extraordinary and excessive profits made by banks. The government had faced legal challenges from banks, leading to prolonged litigation and delays in tax collection.
Prime Minister Shehbaz Sharif had issued special directives for the resolution of these cases, emphasizing the need for timely tax collection. He instructed Law Minister Senator Azam Nazeer Tarar, Attorney General Mansoor Awan, Finance Minister Muhammad Aurangzeb, and FBR Chairman Rashid Langrial to take immediate legal measures to ensure compliance.
The government has hailed this as a historic success, achieved through a coordinated strategy that ensured the recovery of billions in windfall tax. With court rulings now clearing the way, the FBR is expected to continue its efforts to strengthen the country’s revenue base.