Islamabad, February 21, 2026 – The Federal Board of Revenue (FBR) has collected more than Rs5 billion as income tax from prize bond winnings during the first seven months (July–January) of the fiscal year 2025-26.
According to official data, the FBR amassed Rs5.02 billion, slightly lower than Rs5.09 billion collected during the same period last year, marking a nominal decline of 1%. However, the collection of income tax in January 2026 fell 12%, reaching Rs763 million, compared with Rs868 million in January 2025.
Tax on Prize Bond Winnings
The FBR imposes advance income tax on prize bond and other contest winnings under Section 156 of the Income Tax Ordinance, 2001. This section requires:
1. Deduction of tax from the gross amount paid on prize bonds, lotteries, raffles, quizzes, promotional prizes, or crossword contests.
2. Collection of tax on the fair market value if the prize is non-cash.
3. The deducted or collected tax is treated as final tax on the income from such winnings.
Current Tax Rates
• Prize bond and crossword puzzle winnings:
o 15% for taxpayers on the Active Taxpayers List (ATL)
o 30% for non-ATL individuals
• Raffles, lotteries, quizzes, and promotional prizes:
o 20% for ATL individuals
o 40% for non-ATL individuals
The FBR’s tax collection mechanism ensures compliance and contributes significantly to the federal revenue, reflecting the government’s ongoing efforts to strengthen the tax base in Pakistan.