The Karachi Metropolitan Corporation plans a new tax on hospitality and event businesses. The proposal aims to increase municipal revenue across the city. Officials expect the measure to generate nearly Rs 1 billion annually.
KMC Proposes One Percent Entertainment Tax
According to KMC officials, the authority will impose a one percent entertainment tax. The levy will apply to hotels, restaurants, and guest houses. Moreover, Airbnb properties will also fall under the proposed taxation framework.
Marriage halls, marquees, and marriage lawns will face the same tax. Wedding banquet facilities operating within Karachi will also become taxable. Authorities will calculate the tax based on each business’s total bill. Consequently, customers may notice slight increases in service charges.
Officials stated that the tax will support municipal revenue generation efforts. Furthermore, the authority seeks to strengthen financial resources for city operations.
Public Consultation Process Begins
Meanwhile, the Karachi Metropolitan Corporation has initiated a public consultation process. Municipal Commissioner Abrar Jaffar invited citizens to share feedback. Stakeholders can submit objections and recommendations regarding the proposal.
In addition, KMC scheduled a public hearing for June 10. The hearing will take place at the corporation’s headquarters. Officials will review public concerns before making a final decision.
The municipal authority plans to seek formal approval through its upcoming budget. If approved, the tax will take effect during the next financial year. Therefore, affected businesses may need to adjust their financial planning.
The proposal marks another effort to expand Karachi’s revenue sources. However, business owners and industry representatives will likely examine its impact closely. Authorities expect public participation to shape the final framework. The upcoming hearing will provide stakeholders an opportunity to present their views.
