Customers to pay withholding tax for booking wedding halls: FBR

In an effort to meet the estimated tax collection target set by the International Monetary Fund (IMF), the Federal Board of Revenue (FBR) has introduced a new tax on wedding expenses.

Officials stated that the FBR has imposed a withholding tax on marriage halls, which will be collected from customers instead of the hall owners.

An official confirmed that the decision followed a meeting between the FBR chairman and a delegation from the marriage hall association on Friday.

A withholding tax of at least 10 percent will be levied on customers.

“The party that books the hall will be responsible for paying the tax. This decision was made under the direction of the FBR,” said Rana Raees, president of the marriage hall association.

He clarified that the hall owners would not be responsible for the withholding tax, urging people to “adhere to the FBR’s policies on the tax.”

This development comes at a time when the FBR is anticipating a tax shortfall of approximately Rs400 billion by the end of December, despite implementing record taxes exceeding Rs1.5 trillion.

Earlier, Finance Minister Muhammad Aurangzeb was briefed about the shortfall, which could increase by Rs50-60 billion in December alone, following a Rs341 billion shortfall from July to November.