According to the Marriage Hall Association, the Federal Board of Revenue (FBR) has introduced a 10% withholding tax on marriage halls, which event organizers will pay.
On Friday, Rana Raees, the association’s president, announced that this tax would be levied on the party organizing the event and the hall’s rental fees. He emphasized that marriage hall owners are not responsible for this tax.
Raees added that this measure follows FBR’s directives to enhance tax collection within the sector.
The tax authority is currently addressing a significant revenue shortfall. As of November 2024, it had collected approximately Rs855 billion, falling short of the Rs1,003 billion target by Rs149 billion.
The FBR initially projected a Rs321 billion shortfall for the first half of the fiscal year (July-Dec). Still, the deficit surpassed Rs338 billion in just five months.
To meet the goals of the International Monetary Fund (IMF) program, the FBR must collect Rs1.71 trillion in December 2024 to reach the six-month target of Rs6.009 trillion. As of now, it has gathered Rs4.3 trillion in the first five months of FY2024-25.
