New tax imposed on marriage halls

ISLAMABAD: The Federal Board of Revenue (FBR) has decided that marriage halls in Pakistan will now have to pay a 10% withholding tax on booking and rental charges, ARY News reported.

As per details, this development came after a meeting between the FBR and the marriage hall association, where both sides agreed on the new tax.

The 10% withholding tax will be collected in addition to the rental charges, and the tax amount will not be borne by the marriage hall owners.

According to the president of the marriage hall association, this move aims to increase revenue collection and streamline tax payments in the marriage hall industry.

The implementation of this tax is expected to contribute to the government’s efforts to increase revenue collection and improve tax compliance.

The development came after the Federal Board of Revenue failed to reach its tax target collection for November 2024.

The International Monetary Fund (IMF) could demand a mini budget from Pakistan if the tax collection authority would fail to attain its target of December, according to sources.

Despite heavy taxes imposed, the FBR failing to reach to tax targets with overall 343 billion rupees shortfall in tax collection, sources said.

The taxation authority has collected Rs 852 billion during November 2024 against the monthly target of Rs1,003 billion, leaving a gap of Rs151 billion.

Also read: Finance Minister asserts strict measures to increase tax revenue

Sources said that the tax collection shortfall of last four months was Rs 192 billion.

The FBR has collected Rs4,292 billion during first five months of 2024-25 against the assigned target of Rs 4,639 billion set for July-November of the current fiscal year, reflecting a shortfall of Rs344 billion.

The taxation authority has collected Rs851 billion in November 2024 against Rs736 billion collection in November 2023, an increase of Rs 115 billion.