ISLAMABAD: The Government of Pakistan has announced adjustments to the profit rates of Special Savings Certificates in response to the implementation of new tax policies aimed at diversifying revenue streams.
The revised profit rates specifically target small and medium investors, offering unique investment opportunities with attractive returns over a two-year period. These changes are part of the National Savings scheme, which includes certificates with tenures extending up to 3 years, designed to provide dividends biannually.
Earlier this year, the government undertook a review of interest rates across various financial products, including special savings certificates, reflecting adjustments aligned with prevailing economic conditions and fiscal imperatives.
In terms of tax implications, investors included in the Active Taxpayer List (ATL) will be subject to a 15 percent withholding tax on their profits from these savings schemes. On the other hand, non-filers of tax returns will face a higher withholding tax rate of 30 percent under similar conditions.
The adjustments in profit rates and the introduction of differential tax rates are part of broader efforts by the government to incentivize tax compliance while ensuring equitable treatment for investors across different income brackets. These measures aim to optimize revenue generation while promoting financial inclusivity and stability in Pakistan’s economic landscape.
The revised rates are set to take effect immediately, impacting both current and prospective investors in the Special Savings Certificates offered by the National Savings scheme.
