Winning a prize bond is a thrilling experience that can instantly change your financial trajectory. However, the exact amount announced by the State Bank of Pakistan is almost never the amount you will carry home. Before disbursing the prize money, the government legally mandates a tax deduction at source. This withholding tax is heavily influenced by your tax compliance status with the Federal Board of Revenue (FBR). Specifically, being an active taxpayer—often referred to as being a 'Filer'—can save you hundreds of thousands of rupees when claiming larger prizes.
Current Tax Rates (2025–26)
Active Taxpayers on the ATL list.
Individuals not on the Active Taxpayer List.
Example: Rs. 750 Bond 1st Prize
*Non-filers lose an extra Rs. 225,000!
If you want to maximize your returns, understanding these tax slabs is non-negotiable. The stark 15% difference between filer and non-filer rates means that simply filing your income tax returns can yield an immediate, massive financial benefit upon winning. If you are curious about the mechanics of how and where to safely deposit your winning ticket once taxes are accounted for, be sure to review our step-by-step guide on How to Claim Your Prize. Also, knowing the mathematical odds of winning can help set realistic expectations for your portfolio's eventual tax liabilities.
How to Save Money?
Become a Filer before claiming your prize. It's a Rs. 225,000 saving on the Rs. 750 bond alone.
Ensure your name is active on FBR's Active Taxpayer List before the draw date.
Premium bonds are credited automatically. Tax is deducted based on your CNIC status at that moment.