20% levy on prize bonds and lottery winnings
Pakistan has implemented new taxation measures on prize bonds and lottery winnings.
Under the Finance Bill 2024, individuals and entities holding prize bonds will now face a uniform tax rate of up to 15%, while winnings from lotteries will be subject to a 20% tax.
According to the provisions outlined in the bill, individuals and Associations of Persons (AOPs) investing in Sukuks with returns under Rs1 million will be taxed at 10%.
Meanwhile, companies and other entities investing in Sukuks will face a higher tax rate of 25%.
For higher returns exceeding Rs1 million , individuals and AOPs will be taxed at 12.5%, whereas companies and entities will continue to bear a 25% tax burden on their Sukuk investments.
