FBR Implements 10% Tax on Marriage Halls

FBR has implemented a 10% withholding tax on marriage halls for bookings and rental charges. This tax will be added to the rental charges, as confirmed by the marriage hall association. The FBR introduced this measure after failing to meet its November 2024 tax collection target of Rs1,003 billion, falling short of Rs151 billion. Sources reveal that the authority has missed its targets by Rs344 billion for the first five months of the fiscal year, with a total collection of Rs4,292 billion against a target of Rs4,639 billion.

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Despite the increase in November’s revenue to Rs852 billion from Rs736 billion in 2023, the gap remains significant. If the FBR continues to miss its targets, the International Monetary Fund (IMF) may push for a mini-budget to meet revenue goals. The Marriage Hall Association supports the new tax, aiming to enhance revenue collection. However, the burden will fall on customers, not hall owners. These developments reflect ongoing challenges in achieving sustainable tax compliance in Pakistan.