ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new policy mandating a 10% withholding tax on the booking and rental charges of marriage halls in Pakistan.
This decision was the outcome of a meeting between the FBR and the Marriage Hall Association, during which both parties agreed on the tax measure. The 10% withholding tax will be charged in addition to the rental fees, with the burden of payment falling on clients rather than marriage hall owners.
According to the president of the Marriage Hall Association, this step aims to enhance revenue collection and streamline tax compliance within the marriage hall industry.
The implementation of this tax comes amidst pressure on the FBR to improve its revenue collection by finding options after failing to meet its November 2024 collection target.
The authority collected Rs. 852 billion in November 2024, falling short of the Rs. 1,003 billion target by Rs. 151 billion. Despite this, the figure represents an increase of Rs. 115 billion compared to Rs. 736 billion collected in November 2023.
Over the first five months of the fiscal year 2024-25, the FBR accumulated Rs. 4,292 billion, which is Rs. 344 billion below the target of Rs. 4,639 billion for the July-November period.
Sources indicate that the International Monetary Fund (IMF) may demand a mini-budget from Pakistan if the FBR fails to meet its December targets. With a cumulative shortfall of Rs. 343 billion in tax collection, the FBR is under pressure to implement stricter measures to boost revenue.
This development reflects ongoing challenges in meeting fiscal goals and highlights the government’s efforts to enhance tax compliance across various sectors.
