ISLAMABAD: The federal government has decided to maintain the current withholding tax rates on prize bond winnings under the Finance Act 2026-27, offering certainty to millions of investors following the implementation of the new fiscal year’s tax measures.
Under the new taxation rules, the withholding tax rate would remain at 15 percent for prize bond winnings of taxpayers, whereas for non-filers, the deduction of income tax will stand at 30 percent. There have been no alterations to the tax structure in the coming fiscal year.
This follows the introduction of the federal budget for FY2026-27, in which several tax measures were modified for various sectors. But there has been no alteration in the tax structure of prize bond winnings in the new fiscal year.
In the meantime, the 107th draw of the Rs750 prize bond is set to take place in Lahore on July 15, 2026. The first prize will carry a cash reward of Rs1.5 million, whereas the second prize will be won by three people and they will get Rs500,000 each. Hundreds of people will also win the third prize worth Rs9,300.
Prize bonds continue to be popular investment products in Pakistan especially among those who prefer Shariah-compliant investments rather than interest-bearing savings products. Under this plan, individuals get an opportunity to participate in draws for cash awards on a quarterly basis, while the invested capital remains intact.
There are prize bonds available in denominations of Rs100, Rs200, Rs750, Rs1,500, Rs7,500, Rs15,000, Rs25,000 and Rs40,000.
