Profits of special savings schemes revised after new taxes

The Government of Pakistan has recently revised the profit rates for Special Savings Certificates in response to the introduction of new taxes.

These changes target small and medium investors by offering unique investment opportunities with a two-year return on investment.

The National Savings scheme offers these certificates with a tenure of up to 3 years for individuals, providing dividend distribution every 6 months.

Earlier this year, the government updated the interest rates for various products, including special savings certificates.

Regarding tax deductions, individuals listed in the Active Tax Payer List (ATL) will face a 15 percent withholding tax on profits.

In contrast, non-filers will be subject to a higher withholding tax rate of 30 percent under the same conditions.