Karachi:
The Federal Board of Revenue (FBR) has stated that a significant increase in tax collections from wedding ceremonies has been recorded in the country as more attention has been paid to ensuring collection of withholding tax from wedding ceremonies nationwide.
According to the FBR document, withholding tax deduction on marriages increased by 19% in the fiscal year 2024-25, while documentation is increasing in the event management sector and withholding tax collection on marriages in the fiscal year 2025 was Rs. 2.2 billion.
According to the document, last fiscal year, with an increase of Rs. 500 million in withholding tax on marriages, collections of Rs. 1.7 billion were generated. The main reason for this increase is the strict supervision of the FBR.
The FBR said that a significant increase in expenditure on weddings has been recorded in the three major cities of Karachi, Lahore and Islamabad. The FBR is collecting revenue under Section 236 CB of the Income Tax Ordinance, 2001.
It was further stated that under the law, this tax is being collected from wedding halls, marquees, and hotels, while advance tax is collected from events held in restaurants, clubs, or community centers.
According to the document, tax collections also include food, drinks, decorations, and other related services at events.
It was further informed that a 10% tax is levied on those included in the active tax list, while a 20% withholding tax is applicable on the marriage ceremonies of non-filers. This tax can be adjusted with the annual tax liability of the filers.
According to FBR officials, the aim of focusing on wedding ceremonies is to document the undocumented sector, and this sector is a large source of income, but the majority try to stay outside the tax net.
Officials said that in the context of lavish wedding expenses, this sector could be an effective means of increasing revenue for the government.
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