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People who win prize bond draws will continue to pay the same withholding tax after the Finance Act 2026-27 came into force at the start of the new financial year.
Under the latest tax rules, active filers will pay 15 percent tax on prize money, while non-filers will continue to face a 30 percent deduction. The government has not announced any increase or reduction in these rates.
Prize bonds remain one of Pakistan’s most trusted savings options because they are backed by the government and can be redeemed at any time. Instead of earning monthly profit, investors enter scheduled draws where lucky bond holders receive cash prizes.
The scheme is available in several denominations, including Rs200, Rs750, Rs1,500, Rs7,500, Rs15,000 and Rs40,000, making it accessible to people with different budgets.
The next draw will be held for the Rs750 prize bond in Lahore on July 15, 2026. The first prize has been set at Rs1.5 million, while thousands of bond holders across the country are expected to take part in the draw.
Financial experts say investors should keep their tax records updated and remain on the Active Taxpayers List (ATL), as this can significantly reduce the amount deducted from prize money.
Although prize bonds are often purchased in the hope of winning a major cash prize, they also remain a secure way to save money because the original investment can be claimed back whenever the holder chooses to encash the bond.
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