FBR imposes new tax on wedding halls

ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new 10% withholding tax on wedding events held at banquet halls, to be charged directly to the booking party rather than the hall owners. This decision follows discussions between FBR officials and a delegation from the Wedding Hall Association in Karachi.

Rana Rais, President of the Wedding Hall Association, clarified that the withholding tax would be added on top of the hall rental fees and is entirely separate from the charges faced by wedding hall owners. He also emphasized that citizens hosting weddings should be aware of the new policy when planning their events.

FBR Falls Short of Tax Collection Targets by Rs356 Billion

In a separate development, the FBR has reported missing its five-month tax collection target by a significant Rs356 billion, managing to collect Rs4.28 trillion instead of the expected Rs4.64 trillion. This marks the fourth shortfall in five months, with November’s target missed by Rs166 billion.

Despite implementing measures like a Rs32.5 billion incentive package and consulting foreign experts, the FBR’s collections have remained below target. Concerns raised by the IMF highlight missed targets for indirect taxes such as sales tax and customs duties, although income tax collections exceeded expectations.

Read More: FBR Misses November Tax Collection Target, Faces Pressure from IMF

Ongoing enforcement issues and political challenges are contributing factors to the shortfall. With the end of the year approaching, FBR officials are considering the possibility of a mini-budget if December’s tax collection targets are also missed.