Marriage halls to pay 15% sales tax on services

Court dismisses a petition filed by hall and lawn owners’ body

KARACHI: Marriage halls have become liable to pay 15% sales tax on services in Sindh as the provincial high court has dismissed a case due to absence of the petitioner at case hearings.

The court dismissed the case after the petitioner - the Karachi Marriage Halls/Lawns Owners Association - failed to push ahead with the case due to its continued absence at hearings on various dates.

In Sindh, sales tax on the services provided by marriage halls and lawns has been levied since July 1, 2011, but it was not being collected due to ad-interim orders in the wake of the petition.



Standalone marriage halls, lawns and marquees located on plots of up to 800 square yards are exempted from sales tax provided that these are not air conditioned, are not located in hotels or clubs, are not owned, operated or managed by caterers and have no branch or any other marriage halls or lawns in Sindh, said an officer of the Sindh Revenue Board (SRB).

According to the Finance Act 2011, marriage halls and lawns are subject to a 15% levy on services provided by them.

“Now with the dismissal of the petition, the SRB will be able to impose and collect sales tax on the services of marriage halls and lawns, including those located in hotels or clubs,” the officer added.