Pakistan has enacted fresh taxes on lottery winnings and prize bonds.
Lottery wins will be subject to a 20% tax, while prize bond holders will now be liable to a uniform tax rate of up to 15% under the Finance Bill 2024.
The bill’s provisions provide that 10% tax will be applied to individuals and Associations of Persons (AOPs) who invest in Sukuks with returns less than Rs 1 million.
Companies and other organizations that purchase Sukuks will be subject to an increased tax rate of 25% in the interim.
Individuals and AOPs will pay 12.5% tax on greater returns over Rs. 1 million, but businesses and other entities will still pay 25% tax on their Sukuk investments.
