GST imposed on advance booking of wedding halls
The government will collect 5% tax over the advance booking of wedding halls, hotels and clubs. This is likely to increase the expenses of all those who are desirous of getting married.
The decision was taken by Finance Minister Ishaq Dar, who chaired a meeting at the Finance Division of the Federal Board of Revenue (FBR) to review the process for sales tax refunds in budget 2016.
Dar directed that every effort should be made to facilitate the business community including exporters. He expressed the hope that finalization of sales tax refunds would help in increasing the business activity in the country.
According to a source at the FBR, wedding halls around the country are already bound to pay tax on their income. However, it has been decided to impose sales tax on the advance booking of wedding halls for any event.
The FBR has already instructed its regional tax offices over the decision and issued a notification.