Weddings in Pakistan are set to become even more costly, with the Federal Board of Revenue (FBR) announcing the imposition of a 10% withholding tax on wedding halls. This new measure, effective immediately, is aimed at curbing tax evasion in the lucrative wedding industry and boosting government revenues.
The tax will apply to the total charges billed by wedding halls, including venue rental, catering services, and other amenities. The move has raised concerns among couples planning their weddings, as the additional tax burden could significantly increase the cost of celebrations.
Wedding halls, which are already a major expense for families, may raise their prices to cover the new tax, making it harder for many to afford grand weddings. However, some experts believe that the tax will help formalize the wedding industry, ensuring that businesses pay their fair share of taxes while reducing the informal cash transactions that often go unchecked.
The wedding industry, a significant part of Pakistan’s economy, has long been a target for tax authorities due to its lack of transparency and high value transactions. The FBR has promised that the new tax will help improve the efficiency of tax collection, ensuring that businesses comply with regulations.
While the move has sparked debates, it also highlights the growing need for the government to enhance its tax base. For now, couples will need to factor in the new costs as they plan their big day, with some turning to smaller venues or alternative celebration options to avoid the higher fees.
