Prize bond buyers get tax update in Pakistan

KARACHI: Following the implementation of the new Finance Act 2026-2027 on July 1, details have emerged regarding the tax deductions applicable to prize bond winnings for both tax filers and non-filers.

As the new fiscal year begins, various tax reforms across different sectors have taken effect under the new budget.

However, in a welcoming development for investors, the federal government has decided to keep the tax rates on prize bond rewards unchanged.

Under the current Finance Act, tax filers will continue to face a 15 percent withholding tax on their winnings. Meanwhile, the tax rate for non-filers remains doubled at 30 percent, keeping in line with previous fiscal policies.

In related news, the upcoming 107th draw for the Rs 750 prize bond is scheduled to take place on July 15, 2026, in Lahore.

For this draw, a grand first prize worth Rs 1.5 million will be awarded to one lucky winner, while three second prizes of Rs 500,000 each will be distributed to three fortunate individuals.

Additionally, hundreds of other participants will receive third-prize rewards of Rs 9,300 each.

Prize bonds remain a highly popular investment vehicle in Pakistan, particularly for a large number of citizens who choose to avoid interest-based banking.

Through this state-backed system, investors’ principal amounts remain completely secure, while granting them quarterly opportunities to win cash prizes.

National Savings currently offers various denominations of prize bonds, including Rs 100, Rs 200, Rs 750, Rs 1,500, Rs 7,500, Rs 15,000, Rs 25,000, and Rs 40,000.