ISLAMABAD: The federal government has officially increased the Prize Bond tax rates along with withholding tax on profits earned through debt instruments, as stated in a new notification issued following the implementation of the July 2025 federal budget.
Under the revised policy, the Prize Bond tax for filers has been set at 15 percent, while non-filers will face a significantly higher Prize Bond tax rate of 30 percent on their winnings.
| Prize Type | Winning Amount (Rs.) | Tax Rate | Tax Deducted (Rs.) | Net Amount (Rs.) |
|---|---|---|---|---|
| First Prize | 1,500,000 | 15% | 225,000 | 1,275,000 |
| Second Prize | 500,000 | 15% | 75,000 | 425,000 |
| Third Prize | 9,300 | 15% | 1,395 | 7,905 |
This change aims to strengthen tax collection and encourage documentation of the economy.
Additionally, the same tax structure will now apply to profit on debt or loan returns. Filers will continue to pay 15 percent, while non-filers will be taxed at 30 percent, aligning with the new Prize Bond tax brackets.
| Prize Type | Winning Amount (Rs.) | Tax Rate | Tax Deducted (Rs.) | Net Amount (Rs.) |
|---|---|---|---|---|
| First Prize | 1,500,000 | 30% | 450,000 | 1,050,000 |
| Second Prize | 500,000 | 30% | 150,000 | 350,000 |
| Third Prize | 9,300 | 30% | 2,790 | 6,510 |
The updated Prize Bond tax policy is now in effect across the country and is expected to impact both investors and casual bondholders, especially those not registered as active taxpayers.
Earlier, the National Savings Directorate completed preparations for the launch of modern digital prize bonds in Pakistan.
According to sources, arrangements for the launch of digital prize bonds have been completed including development of state-of-the-art mobile application for the issuance of these bonds.
The Pakistan government has planned to issue bonds in denominations of Rs500, Rs1000, Rs5000, and Rs10,000.
Digital prize bonds will be available to National Savings account holders, with an expected investment ranging between Rs800 billion to Rs1000 billion.
The rules for digital prize bonds have been forwarded to the Cabinet Committee on Legislative Affairs for approval.
