ISLAMABAD: The government has retained the existing tax rates on prize bond winnings under the Finance Act 2026-27, offering relief to millions of prize bond holders despite broader revisions to tax laws introduced with the new fiscal year’s budget.
The Finance Act for the fiscal year 2026-27 came into effect on July 1, bringing several amendments to taxation across different sectors of the economy.
However, the government has decided not to revise the withholding tax applicable to prize bond prize money.
In this regard, individuals who are registered tax filers will continue to pay a 15 percent withholding tax on prize bond winnings, while non-filers will remain subject to a 30 percent tax deduction.
The unchanged tax structure means that winners of prize bond draws will face the same tax obligations as they did during the previous fiscal year, with no additional financial burden imposed under the latest budget.
The announcement comes as interest grows ahead of the 107th draw of the Rs750 denomination prize bond, which is scheduled to take place in Lahore on July 15, 2026.
Under the announced prize structure, a single winner will receive the first prize of Rs1.5 million. In addition, three winners will each receive the second prize of Rs500,000, while hundreds of successful participants will be awarded the third prize of Rs9,300 each.
In this sense, the prize bonds continue to be a popular savings and investment option in Pakistan, particularly among individuals who prefer alternatives that avoid interest-based returns.
The National Savings prize bond scheme offers a range of denominations to suit different investors. Currently, prize bonds are available in denominations of Rs100, Rs200, Rs750, Rs1,500, Rs7,500, Rs15,000, Rs25,000, and Rs40,000.
The decision is expected to reassure participants that the taxation of prize bond winnings will remain stable throughout the 2026-27 financial year.
