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FBR imposes 10% tax on wedding halls in Karachi

MM News Staff by MM News Staff
December 6, 2024
Image: APP

Image: APP

In a significant development, the Federal Board of Revenue (FBR) has announced the imposition of a 10 percent withholding tax (WHT) on all wedding halls in Karachi, effective immediately. The decision, reported on Friday, is part of the government’s broader efforts to expand its tax net and regulate businesses in the city.

The new tax policy was finalized following a detailed meeting between the President of the Wedding Halls Association, Rana Raees, and FBR officials. During the meeting, it was agreed that wedding hall owners in Karachi would be required to collect the 10 percent withholding tax from clients booking venues for events. This tax will be levied on the total rent charged for booking the wedding halls.

Rana Raees, speaking to the media after the meeting, clarified that the wedding hall owners would not be directly responsible for the tax, but would simply serve as the collectors of this new levy. “The tax will be collected from the parties booking the wedding halls,” Raees explained. He emphasized that the 10 percent withholding tax would be paid separately from the rent of the venue, and owners of wedding halls would not be financially burdened by the tax itself.

Raees also urged all clients planning events at wedding halls to be aware of the new tax policy when making their bookings. “It is important for people to keep the FBR’s policy in mind when finalizing their arrangements for weddings,” he added.

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