ISLAMABAD: The Federal Board of Revenue (FBR) has manifested a considerable increase in tax collections from marriage events all over Pakistan, thus emphasizing the monetary aspect of the country’s lively marriage halls that is gaining even more power.
FBR mentioned in its reports that the withholding tax on weddings has gone up by 19% in the year 2024-25. The increase in this tax is primarily credited to the stringent measures taken to ensure that the law is being followed, and moreover, these measures were widely applied in their operation, particularly in the country’s largest cities like Karachi, Lahore, and Islamabad.
The FBR was able to collect around Rs 202 crore from the wedding withholding tax in the previous fiscal year, which is an increase of Rs 50 crore in comparison to Rs 152 crore from the previous year. This loftiness is attributed to the tough supervision and documentation improvements implemented in the event organizing sector.
The FBR is empowered to collect this tax under Section 236CB of the Income Tax Ordinance, 2001, which allows taxing wedding halls, marquees, and hotels while the tax is also levied on restaurants, clubs, and community centers for events held there. These taxes take care of all the expenses for the various services that are part and parcel of any wedding, like catering, decoration, etc.
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Officials are of the opinion that the tax revenues are a clear indicator of the increasing size and costs of wedding parties in the big cities of Pakistan which in turn help the government to achieve its revenue targets.
