Federal govt imposes up 20% tax on prize bond & lottery winners: Details inside

ISLAMABAD: The federal government has imposed a fixed tax rate of up to 20 percent on the winners of prize bonds and lotteries through the Finance Bill 2024, here on Thursday.

As per the details, a fixed tax rate of 15 percent will now apply to winnings from prize bonds or crossword puzzles.

The government has imposed a 20 percent tax on prizes won from raffles, lotteries and quizzes held to promote sales.

Meanwhile, the government has imposed a 10 per cent tax on investments made by any individual and association of persons (AOPs) in Sukuk whose return on such investment is less than Rs 10 lakh. In addition, there is a 25% fixed tax on any company or entity investing in Sukuk.

For returns above Rs. 1 million, the individual or AOP investor will pay a 12.5 percent tax, while the entity or company will continue to pay a 25 percent tax.