The Federal Board of Revenue (FBR) has clarified that there will be no tax imposed on the prize money given to national athlete Arshad Nadeem for his historic achievements, in response to rumors.
Arshad, the gold medalist for Pakistan in the Paris Olympics, set a new record by breaking a 118-year old Olympic record, bringing Pakistan its first gold in 40 years.
After his exceptional performance, the federal, Punjab, and Sindh governments declared different rewards for the Olympian. Yet, there were speculations that these rewards could be taxed.
Responding to these issues, FBR representative Bakhtiar confirmed to Samaa TV in a private discussion that there will be no tax on the prizes given to Arshad Nadeem. He stressed that Olympic prizes are not subjected to taxation under the Income Tax Ordinance.
Bakhtiar clarified that despite prize bonds, lottery winnings, quiz competition rewards, and sales promotion prizes by companies being taxable under Section 156 of the Income Tax Ordinance, this rule does not pertain to the awards earned by Arshad Nadeem.
The FBR spokesperson once again emphasized that Arshad Nadeem is a national hero and pledged to provide him with any necessary support as he continues to make the country proud.
