The government has decided to increase the withholding tax on the rate of return of National Saving Schemes. It will be imposed on both filers and non-filers.
The tax on filers’ profit has been increased from 10% to 15%, while that of non-filers has been increased to 30%, a notification issued by the Central Directorate of National Savings stated.
The new tax rates came into effect on July 1.
Earlier this month, the government increased the rate of return on multiple saving schemes. These include:
>10-year Defense Saving Certificates – 9.35% return
>Regular Income Saving Certificates – 8.76% return
>Six-month Short-term Saving Certificates – 7.20% return
The government has maintained the interest rate on Special Saving Certificates, Savings Accounts, and Welfare, Pensioners, and Martyrs Family Certificates.