No withholding tax on Arshad Nadeem’s prize money, FBR clarifies
Arshad Nadeem is set to make history at Diamond Legaue. PHOTO: FILE
The Federal Board of Revenue (FBR) has clarified that no withholding tax will be imposed on the prize money awarded to national athlete Arshad Nadeem. The Olympian, hailed as a national hero, will receive full support from the authorities.
Speaking to The Express Tribune, FBR member and spokesperson Bakhtiar Muhammad stated, "There will be no tax on the prize money given to Arshad Nadeem. The income or withholding tax does not apply to such awards."
He explained that under Section 156 of the Income Tax Ordinance, there is no mention of taxes on Olympic rewards.
He further noted that Section 156 only refers to withholding tax on lottery winnings, prize bonds, quizzes, and marketing-related prize schemes by companies.
"Arshad Nadeem is a national hero, and we will extend all possible support to him," Bakhtiar added.
The clarification comes amid rumours that the federal, Punjab, and Sindh governments' announced rewards for Nadeem's outstanding performance would be taxed. The FBR has firmly denied these baseless rumours.
Nadeem made history by winning Pakistan's first-ever Olympic gold medal in athletics, securing the top spot in the men's javelin throw at the 2024 Paris Games. His victory, particularly against defending champion Neeraj Chopra of India, has elevated him to the status of a national hero.
Nadeem set a new Olympic record with a throw of 92.97 metres, securing a gold medal at the Paris Olympics. He has become an inspiration for the youth.
Apart from the highly justified praise on Nadeem, he was also showered with rewards for his outstanding performance. On behalf of the Punjab government, chief minister Maryam Nawaz announced a whopping Rs100 million reward for the javelin ace. In addition to this, the Sindh government will also make the Olympic gold medalist's pockets a little heavier after announcing he is to be given Rs50 million.
In addition, Sindh Governor Tessori announced Rs1 million, and singer Ali Zafar and cricketer Ahmed Shahzad Rs1 million each. Also, Karachi Electric (KE) has decided to contribute Rs2 million for Nadeem, and the World Athletics Federation will give a US$50,000 winning prize.