ISLAMABAD – 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 case of 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.
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)
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.
