Prize Bond tax structure in Pakistan remains unchanged after the implementation of Budget 2026, bringing clarity to millions of investors across the country. Although the new fiscal year introduced several tax measures, the government has confirmed that no additional tax has been imposed on prize bond winnings.
Under the latest policy, tax rates for prize bond prizes continue to depend on the winner’s tax status. Filers will pay a 15% withholding tax, while non-filers will face a 30% deduction from their winnings.
The announcement has ended speculation that Budget 2026 would increase taxes on Prize Bond prizes. Instead, authorities have maintained the existing tax rates for all categories of prize bonds.
For the standard prize categories, the first prize of Rs. 1.5 million will carry a tax deduction of Rs. 225,000 for filers, leaving them with Rs. 1,275,000. Non-filers will pay Rs. 450,000 in tax and receive Rs. 1,050,000.
The second prize of Rs. 500,000 will result in a tax deduction of Rs. 75,000 for filers, while non-filers will pay Rs. 150,000. The third prize of Rs. 9,300 will be reduced by Rs. 1,395 for filers and Rs. 2,790 for non-filers.
The same withholding tax policy applies to all other Prize Bond denominations available in Pakistan, including Rs. 200, Rs. 750, Rs. 1,500, Rs. 15,000, and premium prize bonds worth Rs. 25,000 and Rs. 40,000.
For example, the Rs. 200 Prize Bond first prize of Rs. 750,000 will leave filers with Rs. 637,500 after tax, while non-filers will receive Rs. 525,000.
Similarly, the Rs. 1,500 Prize Bond first prize of Rs. 3 million will be reduced by Rs. 450,000 for filers and Rs. 900,000 for non-filers.
Premium prize bonds also remain subject to the same tax rates. The Rs. 25,000 Premium Prize Bond first prize of Rs. 50 million will leave filers with Rs. 42.5 million, while non-filers will receive Rs. 35 million after tax deductions.
For the Rs. 40,000 Premium Prize Bond, the first prize of Rs. 80 million will be reduced to Rs. 68 million for filers and Rs. 56 million for non-filers.
Meanwhile, prize bond investors have another opportunity to test their luck. The 107th draw of the Rs. 750 Prize Bond is scheduled to be held in Lahore on July 15, 2026.
Prize bonds continue to be one of Pakistan’s most popular savings instruments. Many investors prefer them because they provide an opportunity to win cash prizes without affecting the original investment. The transparent quarterly draw system also makes them an attractive option for people seeking an interest-free investment alternative.
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With Budget 2026 now in effect, Prize Bond holders can continue participating in upcoming draws knowing that the existing tax structure remains unchanged. The government’s decision provides certainty for investors while maintaining the current withholding tax policy for both filers and non-filers.
