ISLAMABAD – The federal government has increased withholding tax on winning amount of prize bonds for fiscal year 2024-25 after budget aftershocks continue to jolt public.
Reports said the tax has been jacked up to 15%, compared to previous 10%, as Finance Bill 2024-25 is enforced.
Furthermore, the tax on lotteries and prizes won from quizzes conducted by companies for promotion of sales has been increased to 20 percent
For instance, an individual winning Rs100,000 lottery or prize from quiz events will subject to Rs20,000 tax.
Meanwhile, the federal government has imposed a 10% tax on investments made by individuals or Association of Persons yielding less Rs1 million profit. However, there will be 12.5% tax if the return amount exceeds Rs1 million.
Separately, both individuals and AOPs will continue to pay 25% fixed tax.
