The federal government has increased the rate of withholding tax on prize bond winnings and profits earned through national savings schemes.
A notification issued by the Central Directorate of National Savings said both tax filers and non-filers will now face higher deductions, according to media reports.
As per the official notification, the prize bond winner will be subject to 15% withholding tax on any winning amount in the case of a filer.
However, the non-filers will be charged a significantly higher 30% withholding tax.
The same tax rate will apply to those who earn profits on national savings schemes and investments.
Also read: Rs200 Prize Bond 16 December 2024 – Check draw results online
This move is part of the government’s broader initiative to enhance revenue generation and encourage citizens to become active tax filers.
Prize bonds are a government-backed investment product issued by Pakistan’s Central Directorate of National Savings (CDNS).
They offer a secure and simple way for citizens to invest their money while having the chance to win cash prizes through quarterly draws.
Prize bonds are available in several denominations, including:
Rs. 100
Rs. 200
Rs. 750
Rs. 1,500
Rs. 7,500
Rs. 15,000
Rs. 25,000 (Premium Bond)
Rs. 40,000 (Premium Bond)
Also read: 1500 prize bond list 2024
Each bond is entered into regular lucky draws where winners can claim prizes ranging from a few thousand rupees to millions, depending on the bond’s denomination and the draw results.
