Special Savings Certificate Rates Update After New Taxes!

• Pakistan's government has adjusted rates for special savings certificates.
• Special Savings Certificates are popular among small and medium investors.
• Investors receive dividends every six months from these certificates.

In Islamabad, the government of Pakistan has recently implemented several changes across various services, including fresh taxation adjustments that now affect the rates of Special Savings Certificates.

Special Savings Certificates have long been a popular choice among investors through National Savings. These certificates, initiated by Markaz Qaumi Bachat, cater specifically to small and medium investors, offering unique investment opportunities with promising returns over a two-year period.

The tenure of these certificates has been extended to three years for investors, ensuring dividends are distributed every six months. Earlier this year, the government revised the rate of return for various financial products, including Special Savings Certificates.

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Under the new tax regulations, individuals listed in the Active Taxpayer List (ATL) will encounter a 15% withholding tax on their profits, irrespective of the date or amount of investment. Non-filers, however, face a higher withholding tax rate of 30% under the same conditions.

New Taxes on Special Savings Certificate

Special Savings Certificates	Tax
Taxation (Withholding Tax)	– 15% for individuals on Active Taxpayer List (ATL)
	– 30% for non-filers of ATL

National Savings lately adjusted interest rates, setting the rate at 15.7percent per annum for the first five months and while for sixth and final month, the rate stands at 16.6percent.