The federal government has introduced updated withholding tax rates on earnings from National Savings Schemes, including prize bond winnings and profits on debt instruments, with significantly higher rates for non-filers.

🔹 For Active Taxpayers (ATL):
A 15% withholding tax will apply to both prize bond winnings and profits from debt or loan interest.

🔹 For Non-Filers:
The rate doubles to 30%, creating a clear incentive to join the formal tax net.

Additionally, under Section 151 of the Income Tax Ordinance, the same tax structure applies to all interest or profit earned from debt instruments.

💼 High-Income Bracket:
If annual profit on debt exceeds Rs. 5 million, it will be taxed as regular income under business slab rates:

• Above Rs. 5.6 million/year: 45% tax
• Up to Rs. 5.6 million/year: 40% tax

These changes are part of the government’s broader strategy to enhance tax compliance and expand the documented economy.