The government's revenue board has waived tax on interest or profits derived from offshore banking by any depositor or non-resident loan guaranters.
The income tax wing of the National Board of Revenue (NBR) issued a Statutory Regulatory Order (SRO) on Monday to the effect of the waiver.
In the SRO, the NBR says, "The exemption of the tax has been given as per Offshore Banking Law 2024."
With the SRO, the interest amount on offshore-bank deposits and loans would get exemptions from payment of taxes at a rate of 20 per cent.
A senior tax official says, "We have offered the waiver following the offshore banking law in a bid to boost country's foreign- currency reserves."
The country has been reeling from depletion of foreign-exchange reserves, recently hovering around $20 billion, and dollar dearth forces import tightening with its domino effect on the economy.
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