Impact of Government Taxes & Economic Growth on Bank Profitability.

Abstract

This study completely focused on identifying the impact of Government taxes, Economic Growth (GDP) on financial performance of the banking industry in Pakistan. This research has considered Government Taxes and Economic growth (GDP) as independent variable. Whereas financial performance of the banking industry as the dependent variable. However, banking sector financial has been considered as the dependent variable. The core emphasis of this study has been on assessing the impact of Government Taxes and Economic growth (Independent variables) and financial performance of banking sector (Dependant variable) in banking industry of Pakistan. Source of data is secondary (Annual reports of banks) which were used for the data purpose of collection and variables for the conduct of this research from the time period of 2010 – 2019. With The Size of Sample was 70 observations were completed to represent the whole sample of banking sector of Pakistan. Finalized Collected data has then been analyzed through statistical implication instrument for a regression analysis by using the software SPSS to identify the impact of each and every variable in this research. On the basis of fact findings it has concluded that government taxes have significant impact on financial performance in the banking industry of Pakistan. Conclusively it has been approved that changes in the government taxes brings the definite change in financial performance of banking sector in Pakistan.