Govt likely to raise tax on prize bonds in FY2023-24 budget

ISLAMABAD: The federal government is likely to raise the tax ratio on the prize bonds in the upcoming FY2023-24 budget, ARY News reported on Tuesday.

According to the budget document, a five per cent increase in the tax on prize bonds has been proposed. With the approval, the ratio of advance tax on the prize bonds will be 20pc which is currently 15 pc.

Furthermore, the government is suggested to per centage of withhold tax from 15 to 20pc on the profit margin of the prize bonds.

Earlier, the International Monetary Fund (IMF) in fresh contact with Pakistan demanded to slash expenditures of the federal and provincial governments, quoting sources ARY News reported.

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The IMF in pre-budget talks has also demanded to fix the tax revenue target above Rs. 10,000 billion, according to sources.

In virtual talks Pakistan has convinced the lender to move the talks ahead and also requested about the staff-level agreement, sources said.

“IMF intending a joint 9th and 10th review of the loan package, but Pakistan wants completing 9th review of the bailout package separately”.

Current session of talks could not achieve any major progress, sources said.

According to sources, the sides also discussed budget figures as the monetary fund advanced its demand to enhance the FBR tax collection to 10,000 billion rupees. It also demanded steps to increase recovery of income tax.