FBR confirms no tax on Arshad Nadeem’s prize money

ISLAMABAD: The Federal Board of Revenue (FBR) dismissed online rumours claiming that it will impose tax on the prize money won by Arshad Nadeem, who won gold medal at 2024 Paris Olympics.

The FBR confirmed that the Olympic prize money won by Arshad Nadeem would remain tax-free.

Read more: Olympics: Arshad Nadeem on a double-decker!

Nadeem achieved a historic milestone by winning Pakistan’s first Olympic gold medal in 40 years at the Paris Olympics. His victory also broke a 118-year-old Olympic record.

Following this, several governmental bodies, including federal, Punjab, and Sindh authorities, announced rewards for Nadeem.

Concerns about potential taxation of these rewards circulated on social media. In response, FBR representative Bakhtiar Muhammad clarified that under the Income Tax Ordinance, Olympic prize money is exempt from taxes.

He stated that while other types of prizes, such as those from lottery winnings, prize bonds, and promotional contests, are subject to tax under section 156 of the Ordinance, this does not apply to Olympic awards.

Bakhtiar further assured the public that the FBR and the government were “committed” to ensuring that Nadeem’s prize money remained exempt from tax.

Read more: Arshad Nadeem: 2024 summer Olympics hero given grand welcome

He also noted that arrangements will be made to confirm this exemption well before Nadeem’s tax return is due in September 2025.