The Federal Board of Revenue (FBR) has introduced a withholding tax on wedding halls, which will be directly collected from the booking party rather than the hall owners.
A delegation from the Wedding Hall Association recently met with FBR officials in Karachi, where it was agreed that a 10% withholding tax will be applied to wedding events.
Rana Rais, President of the Wedding Hall Association, explained that the tax would be levied on the booking party hosting the event, in addition to the wedding hall rental fee. He emphasized that this tax is not associated with the hall owners.
Rais also urged wedding hosts to be aware of FBR’s policy regarding the withholding tax.
In a separate development, the FBR has fallen short of its tax collection target by Rs356 billion over the first five months, with total collections reaching Rs4.28 trillion instead of the expected Rs4.64 trillion.
This marks the fourth time in five months that the FBR has missed its monthly target, including a Rs166 billion shortfall in November. Despite measures like a Rs32.5 billion incentive package and foreign consultancy, tax collections continue to lag behind expectations.
The IMF has raised concerns, particularly over the shortfall in indirect taxes such as sales tax and customs duties, although income tax exceeded its target. The FBR’s enforcement challenges and political issues have contributed to the shortfall, with a mini-budget potentially being considered if December’s tax collections do not improve.
