Through Finance Bill 2024, the federal government has set a fixed tax rate of up to 20 percent on prizes from lotteries and prize bonds.There will now be a fixed tax rate of fifteen percent on prize bond or crossword puzzle winners.Wins from lotteries, raffles, and rewards from sales-promoting quizzes are subject to a 20 percent tax rate from the government.
In the meantime, any individual or Association of Persons (AOP) that invests in Sukuks and whose return on investment is less than Rs. 1 million is subject to a 10% tax imposed by the government. In addition, any business or organization that made an investment in Sukuk is subject to a set tax of 25%.The business or firm will continue to pay a 25 percent tax, but the individual or AOP investor will only pay a 12.5 percent tax on returns exceeding Rs. 1 million.
