The government has implemented new withholding tax rates on prize bond winnings and profits from debt or loan interest under National Savings Schemes, with non-filers facing significantly steeper deductions.

According to the revised policy, individuals listed on the Federal Board of Revenue’s Active Taxpayers List (ATL) will now pay a 15 percent withholding tax on prize bond winnings. In stark contrast, non-filers, those not registered as active taxpayers, will be taxed at a hefty 30 percent, effectively doubling the rate for those outside the tax net.

The same tax structure applies to profits earned from debt or loan interest under Section 151. Filers will be subject to a 15 percent withholding tax on any interest or profit, while non-filers will again face a 30 percent deduction.

For individuals earning more than Rs. 5 million in profit on debt within a tax year, the income will be taxed at normal business slab rates. Profits exceeding Rs. 5.6 million annually will attract a 45 percent tax rate, while profits below this threshold will be taxed at 40 percent.