Karachi: Weddings in Pakistan have become more expensive as Pakistani authorities have applied a 10% withholding tax on marriage halls.
The Federal Board of Revenue (FBR) has applied this tax as part of the government’s efforts to boost tax collection. According to the new orders, this tax will be payable to the event organizers, not the marriage hall owners.
Withholding tax on marriage halls
According to Pak Observer, the President of the Marriage Hall Association clarified that those liable for the withholding tax will be charged separately from the hall rental fees.
This decision comes as the FBR struggles to meet its revenue targets. For November 2024, the tax collection stood at Rs. 855 billion, which is Rs. 149 billion short of the Rs. 1,003 billion target.
The move to impose this tax on marriage halls is to address the current fiscal challenges and ensure that the wedding and event industry contributes its share to the national revenue.