Pakistan has introduced new taxation measures on prize bonds and lottery winnings through the Finance Bill 2024. Under these provisions, individuals and entities holding prize bonds will now be subject to a uniform tax rate of up to 15%. Meanwhile, winnings from lotteries will incur a tax rate of 20%.
Regarding investments in Sukuks, individuals and Associations of Persons (AOPs) earning returns below Rs1 million will face a 10% tax rate. For companies and other entities investing in Sukuks, the tax rate will be higher at 25%.
For higher returns exceeding Rs1 million, individuals and AOPs will be taxed at 12.5%, while companies and entities will maintain a 25% tax rate on their Sukuk investments.