Karachi, August 30, 2025 – The National Bank of Pakistan (NBP) has disclosed that its ongoing income tax disputes with the Federal Board of Revenue (FBR) have reached an aggregate value of approximately Rs36 billion by the end of the second quarter of 2025.
The bank shared this update in its latest financial statement, highlighting the scale of pending tax assessments and appeals.
Details of Tax Disputes
As of June 30, 2025, NBP confirmed that most income tax matters remain consistent with disclosures made in its annual audited financial statements for the year ending December 31, 2024. However, fresh developments include amendments to the return of income for tax year 2024 under section 122(5A) of the Income Tax Ordinance, with certain additions being challenged before the relevant appellate forums.
Furthermore, an assessment order for tax year 2023 was issued by the Assistant Commissioner Inland Revenue (ACIR), resulting in additional tax demands. NBP has formally contested these additions before the Appellate Tribunal, maintaining confidence in a favorable outcome.
Financial Impact
According to NBP, the aggregate tax contingencies stood at Rs35,918 million by June 30, 2025, compared to Rs35,160 million as of December 31, 2024. This includes Rs180 million relating to indirect tax issues and the rest linked to direct income tax assessments. Bank officials stated that no provisions have been recorded against these disputes, citing their tax consultants’ opinion that the ongoing appeals are likely to be decided in the bank’s favor.
Historical Context
Earlier, the bank had reported in its 2024 annual report that several past appellate decisions, including those for tax years 2005 and 2009, had resulted in favorable rulings, with certain orders being annulled or remanded back to tax authorities for reconsideration.
Disclaimer:
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