The Pakistan Federal Board of Revenue issued Notification SRO 1588(I)/2023 on 21 November 2023, which establishes a windfall tax for banks in accordance with the new Section 99D that was introduced as part of the Finance Act 2023. As previously reported, Section 99D provides for an additional (windfall) tax on certain income, profits, and gains, with the in-scope sector(s), rate(s), etc. to be established via a notification. Notification SRO 1588(I)/2023 provides that banking companies are subject to the windfall tax, with the tax rate set at 40%. The windfall tax base is the foreign exchange income in tax years 2022...