KARACHI – Wedding costs in Pakistan are set to rise as the government has introduced a 10% withholding tax (WHT) on marriage halls.

In a move aimed at increasing tax revenue, the Federal Board of Revenue (FBR) has made it mandatory for event organizers to bear the 10% withholding tax, which will be charged separately from the hall rental fees. This new policy was confirmed by the President of the Marriage Hall Association, who clarified that the tax would not be the responsibility of the marriage hall owners.

The decision is part of the FBR’s broader efforts to streamline tax collection in the wedding and event industry. The FBR is dealing with a significant revenue shortfall, with November 2024 collections standing at Rs855 billion, falling short of the target of Rs1,003 billion by Rs149 billion.

By imposing this tax, the FBR aims to address fiscal challenges and ensure the event sector contributes more to the national revenue.