Half yearly accounts: EFU General Insurance Limited's after tax profit reduces

The Board of Directors of the EFU General Insurance Limited Company at its meeting held on 20 August 2016 approved the Half Yearly Accounts of the Company for the period ended 30 June, 2016. The after tax profit of the Company was Rs 972 million as against Rs 1,257 million for the corresponding period last year.
The after tax profit has reduced because of increased incidence of tax. The Government of Pakistan has changed the tax structure of insurance companies and from Tax Year 2017 income from all sources are taxed @ 31% whereas till last year Dividend Income was being taxed at 12 1/2 % and capital gains at various slabs minimum was zero and maximum was 15% depending on holding period of securities. Had there not been any change in the tax laws, earnings per share would have been Rs 6/16 as against reported earnings of Rs 4/86.
The Board declared the second interim cash dividend @ of Rs 1.00 per share ie 10% in addition to already paid first interim cash dividend of Rs 1.00 per share ie 10%, making total distribution for the period to 20% (ie Rs 2.00 per share).-PR