Planning a wedding in Pakistan? Get ready for higher expenses as the Federal Board of Revenue (FBR) has slapped a 10% withholding tax (WHT) on marriage halls. This decision aims to boost tax collection, with event organizers now responsible for paying the new tax.
What Does This Mean for You?
According to the Marriage Hall Association, the withholding tax will be charged separately from the hall rental fee. This means wedding guests and organizers will feel the pinch, but hall owners won’t bear the burden.
Why the New Tax?
The FBR introduced this tax to tackle the growing revenue shortfall. November 2024 saw collections of Rs855 billion, significantly missing the target of Rs1,003 billion by Rs149 billion. By taxing the wedding and event industry, the FBR hopes to close this gap and ensure fair contributions from all sectors.
Withholding tax on marriage halls is part of the government’s broader efforts to strengthen the economy. While it might strain wedding budgets, authorities see it as a necessary measure to address ongoing financial challenges and stabilize national revenue.
So, if you’re tying the knot, plan your budget accordingly—because weddings in Pakistan just got a little more expensive.