FBR Introduces 10% Withholding Tax on Marriage Hall Bookings
The Federal Board of Revenue (FBR) has announced a 10% withholding tax on booking and rental charges for marriage halls across Pakistan.
Key Details
- The new tax will be levied on top of rental charges and will not be borne by marriage hall owners.
- The decision came after discussions between the FBR and the Marriage Hall Association.
- According to the association’s president, the tax is intended to boost revenue collection and streamline tax compliance within the marriage hall sector.
Revenue Collection Challenges
The implementation of this tax comes amid concerns over FBR’s failure to meet its November 2024 tax collection target.
- November collection: Rs 852 billion against a target of Rs 1,003 billion, creating a shortfall of Rs 151 billion.
- Cumulative shortfall: Rs 343 billion so far.
Sources suggest that the International Monetary Fund (IMF) may demand a mini-budget if the FBR fails to meet its December target.
Implications
This tax is part of broader government efforts to enhance revenue collection and address fiscal gaps. However, it may place additional financial strain on consumers during an already challenging economic period.
Looking Ahead
As the government faces mounting pressure to meet IMF benchmarks, similar measures to widen the tax base and ensure compliance across industries are expected in the coming months.
