50% increase in tax rates on NSS profits announced Tax rate hike makes National Savings Scheme an unattractive investment Salaried class contributed Rs69.4 billion or 7.8% of the total income tax collection in the first half, which was higher by 20% when compared with the same period of last year. PHOTO: FILE ISLAMABAD: The Central Directorate for National Savings (CDNS) has notified a 50% increase in the income tax rates on the profits earned by making investments in various government schemes – a move which may further discourage small investors from putting their money in these schemes. Effective from July 1, the rate for tax-for-profit on debt imposed under Section 7B (of the Income Tax Ordinance) shall be 15%, according to a notification issued by the CDNS. However, persons not appearing in the active taxpayers list will be charged at 30% income tax rate, it said.