Karachi: Meezan Bank Ltd. has declared a 70% interim cash dividend, amounting to Rs. 7 per share, following a board meeting on August 08, 2024. According to information available from the Pakistan Stock Exchange (PSX), the bank has scheduled the closure of its Share Transfer Books from August 21, 2024, to August 22, 2024. All transfer requests received by the end of business on August 20 will be processed in time for the new dividend entitlement.

The dividend announcement comes amid recent changes by the Government of Pakistan to Section 150 of the Income Tax Ordinance 2001, which affect the withholding tax rates on dividends. Shareholders not listed on the Federal Board of Revenue’s Active Tax-Payers List must ensure their status is updated before the book closure date to avoid higher tax deductions.

Additionally, shareholders with joint holdings are required to specify their shareholding proportions in writing to THK Associates, the bank's Share Registrar, by August 20, 2024. Failure to comply will result in tax deductions based on equal shareholdings between principal shareholders and joint holders. This compliance is crucial as per the FBR's clarification letter dated September 25, 2014.

Furthermore, shareholders eligible for tax exemption under specific clauses of the Income Tax Ordinance should submit valid exemption certificates by the stated deadline to qualify for tax relief, following guidelines from another FBR clarification issued in May 2015.