ISLAMABAD – The federal government has announced an increase in withholding tax rates on winning amount of prize bonds and profit on debt, according to an official notification.
The new tax rate comes into effect from July 2025 with the implementation of the budget for the new fiscal year.
New Tax on Prize Bonds
As per the notification, filers will now face a 15 percent withholding tax on winning amount of prize bonds. In contrast, non-filers will be subject to a higher rate of 30% on the same earnings.
| 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 |
| 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 |
Tax on Profit
As per the revised tax structure, filers will be charged 15% withholding tax on returns from loans or debt instruments, while non-filers will be taxed at 30%.
This move is part of the government’s broader strategy to expand the tax net and encourage more individuals to file their tax returns. The updated rates are effective immediately.
Officials believe that the measure will help increase revenue collection and promote a more documented economy.
Upcoming 750 Prize Bond Draw
The National Savings Centre Rawalpindi is scheduled to hold third draw of Rs 750 prize bond on July 15, 2025.
The balloting will be held at 10:00 am and winners of the 750 prize bond will be announced by the National Savings Centre.
The prize bonds are considered a save investment in Pakistan as it can be encashed at any time and it also provides an opportunity to win big cash prizes.
750 Prize Bond Winning Amount
First Prize: Rs1,500,000 (1 winner)
Second Prize: Rs500,000 (3 winners)
Third Prize: Rs9,300 (1,696 winners)
Tax on 750 Prize Bond
Those who win the prizes can redeem it by visiting the nearby branches of National Savings. The Prize Bond scheme continues to offer a secure investment opportunity to people as they can in cash prizes.
750 Prize Bond 2025 Winners
The second draw of Rs750 prize bond was held in April 2025. The 1st prize of Rs.1,500,000 was won prize bond number 261227.
The second prize, valued at Rs500,000, was awarded to holders of these prize bond numbers: 204763, 413549 and 992747.
