Reason for Increase in Investment in Prize Bonds

After the stern action taken by the FBR against the tax evaders, the investment in prize bond business has been improved to whiten the black money.

FBR authorities has observed that investment in the prize bond business has been increased in recent times after stern action against the big tax evaders while during the current tax year, the investment in prize bond has been increased by Rs40 billion and reached to Rs922 billion.

All these prize bonds are offered to the people who intend to whiten their black money. The claims of winning prize bonds are filed with SBP. Since this is not a documented business, it is causing loss to the state exchequer in the shape of evasion of taxes.

Meanwhile, the investment in Rs.40,000 worth prize bond during current year reached to Rs259 billion with the increase of Rs.34 billion in only one year. Such investment in Rs25,000 worth prize bond reached to Rs.156 billion with the increase of Rs.22 billion during the current year.