The federal government’s Budget 2026 has officially come into force, confirming the latest tax deductions on Prize Bond winnings across Pakistan. Although there had been speculation that the new budget would increase taxes on prize money, the government has decided to keep the existing withholding tax rates unchanged.
According to the new fiscal policy, Prize Bond winners who are registered as tax filers will continue to pay a 15% withholding tax on their prize money. Meanwhile, individuals who are not registered as tax filers will still face a 30% tax deduction on their winnings. Officials have clarified that no additional tax has been imposed on Prize Bond prizes under the 2026-27 federal budget.
For the Rs. 40,000 Premium Prize Bond, the first prize of Rs. 1.5 million will leave filers with Rs. 1.275 million after tax, while non-filers will receive Rs. 1.05 million. The second prize of Rs. 500,000 will pay Rs. 425,000 to filers and Rs. 350,000 to non-filers. Winners of the third prize worth Rs. 9,300 will receive Rs. 7,905 if they are filers and Rs. 6,510 if they are non-filers.
The same tax rates also apply to other Prize Bond denominations. Holders of Rs. 200, Rs. 1,500, Rs. 15,000, Rs. 25,000 Premium, and Rs. 40,000 Premium Prize Bonds will continue to pay 15% tax if they are filers and 30% if they are non-filers. This means the amount received after tax will vary depending on the winner’s tax status, but the deduction percentages remain unchanged.
Meanwhile, Prize Bond investors have another opportunity to win cash prizes as the 107th draw of the Rs. 750 Prize Bond is scheduled for July 15, 2026, in Lahore. Thousands of investors are expected to participate in the quarterly draw.
A Prize Bond continues to be one of Pakistan’s most popular savings options, especially for people looking for a non-interest-based investment. Since the original investment remains secure, investors can participate in transparent draws every three months for a chance to win significant cash prizes without risking the value of their purchased bond. This combination of capital protection and regular prize opportunities continues to make Prize Bond schemes attractive to millions of Pakistanis.
Read more: Check Rs1500 Prize Bond Draw Results Online
