ISLAMABAD, Aug 13: The Central Board of Revenue has said that the rate of withholding tax was reduced from 30 per cent to 20 per cent on profit arising on securities issued by the federal, provincial governments or a local authority.

CBR official spokesman Vakil Ahmed Khan in a statement said that the rate of withholding tax will be 10 per cent on yield of National Saving Deposit Certificate, including a Defence Saving Certificate under the National Saving Scheme; on any profit on debt being an account or deposit maintained with banking company and financial institution and on profit of any bond, certificate, debenture, security or instrument of any kind issued by a banking company, financial institution, a limited company or a finance society. The tax so withheld was adjustable against the final tax liability and would be effective from July 1, 2002, said the spokesman.