Additional tax on prize bonds proposed in Budget 2023-24

ISLAMABAD: The incumbent government was considering imposing additional 5 percent tax on prize bonds in federal budget 2023-24, ARY News reported on Wednesday, citing sources.

Sources told ARY News that the preparations of federal budget have entered the final stages as an additional tax of 5 percent on prize bonds has been proposed.

Sources claimed that it has been proposed to increase the advance tax on bonds from 15 to 20 percent. The budget also proposed a 5 percent increase in taxes on the rate of profit.

It has been proposed to increase the withholding tax from 15 to 20 percent on the rate of profit, which will “increase the number of taxpayers”, sources claimed.

It is pertinent to mention here that the Budget 2023-24 would be presented on 9th June in the National Assembly after approval by the federal cabinet.

The economic team made these remarks while briefing Prime Minister Shehbaz Sharif about preparation of the budget for financial year 2023-24.

The PM was briefed about revised estimates of revenue and expenditures and target estimates for the next year. “The economy has been on a positive trajectory toward financial stability and decrease in deficit,” the meeting was informed.

PM Shehbaz Sharif said that all available resources should be used to reduce the financial difficulties and provide relief to the middle class.