摘要：The purpose of this study is to explore the impact of taxes on dividend policy of banking sector in Pakistan. The data obtained from the financial reports of 21 banking companies listed on Karachi Stock Exchange over a period of five years (2006 to 2010) is used in this study. Pearson correlation and regression is used to find the relationship of tax and dividend income. The results show a significant correlation between taxation and dividend income of the banks and also suggest that the tax-rate is an important determinant of dividend policies of the banking sector.
