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.
