FBR imposes new tax on wedding halls

FBR introduces withholding tax on wedding halls, collected from the booking party, not hall owners.

The Federal Board of Revenue (FBR) has imposed a withholding tax on wedding halls, which will be collected separately from the booking party, not the hall owners.

A delegation from the Wedding Hall Association met with FBR officials in Karachi, where they agreed on a 10% withholding tax to be charged on wedding events.

According to Rana Rais, President of the Wedding Hall Association, the 10% withholding tax will be charged to the booking party for hosting the event at the wedding hall.

He added that this decision was made under the guidance of FBR officials, and the tax would be added on top of the wedding hall's rent. He clarified that the withholding tax is unrelated to the wedding hall owners.

Rais also urged citizens hosting weddings to be mindful of FBR's policy on withholding tax.

FBR Misses Tax Target by Rs356 Billion

Meanwhile, the Federal Board of Revenue (FBR) missed its five-month tax target by Rs356 billion, collecting Rs4.28 trillion instead of the required Rs4.64 trillion.

This marks the fourth monthly shortfall in five months, with November's target also missed by Rs166 billion. Despite efforts such as a Rs32.5 billion incentive package and foreign consultancy, tax collections remain below expectations.

The IMF has raised concerns, especially over missed targets for indirect taxes like sales tax and customs duties. Income tax exceeded its target, but other taxes fell short.

The FBR's enforcement issues and political challenges contribute to the shortfall. A mini-budget may be considered if December’s collections don’t improve.