The National Savings Scheme has officially issued a notification announcing significant increases in the withholding tax rates on prize bond winnings and profits on loans, 24NewsHD TV channel reported on Monday.
According to the notification, a 15 percent withholding tax will now be levied on prize bond winnings for individuals who are on the Federal Board of Revenue's Active Taxpayers List (ATL).
In contrast, for non-filers, the tax burden has been doubled, with a 30 percent withholding tax imposed on any prize bond prizes won.
Similarly, the tax on profits from loans has also been revised.
Filers will be subjected to a 15% withholding tax on any interest or profit earned from loans.
Meanwhile, non-filers will again face a 30% tax on the same category of income.
Experts suggest that the move will not only increase government revenue but also push more individuals toward formal financial compliance.