As part of the recommendations for the upcoming 2023-24 federal budget, it has been proposed to hike the tax on prize bonds by five percent, reported 24NewsHD TV channel on Tuesday, quoting its sources.

It has been recommended to increase the advance tax on prize bonds from 15 percent to 20 percent.

According to the sources, it was also proposed to raise the tax on rate of profit by five percent which means withholding tax on profit rates will be enhanced from 15 percent to 20 percent.

The number of taxpayers will rise after the hike in withholding tax.

The federal cabinet will take the final decision regarding the increase in the taxes, the sources added.

Reporter Waqas Azeem