ISLAMABAD, PAKISTAN: In a new development aimed at enhancing revenue collection, the Federal Board of Revenue (FBR) has introduced a 10% withholding tax on the booking and rental charges of marriage halls across Pakistan.
Agreement Between FBR and Marriage Hall Association
The decision follows a meeting between the FBR and the Marriage Hall Association, where both parties mutually agreed to implement the new tax structure.
Key Points of the Tax:
- Scope: The 10% withholding tax will be applied to booking and rental charges.
- Responsibility: The tax will be collected in addition to rental charges and will not be absorbed by marriage hall owners.
- Objective: To enhance revenue generation and ensure greater compliance within the marriage hall industry.
Implications for the Industry
According to the President of the Marriage Hall Association, the initiative is designed to streamline tax payments while contributing to the government’s broader revenue goals.
Potential Benefits:
- Revenue Growth: The tax is expected to support the government’s efforts to boost revenue collection.
- Compliance: A uniform tax structure will promote greater transparency and adherence to tax laws in the industry.
Impact on Consumers
The withholding tax will likely result in an increase in the total cost of booking marriage halls. Customers will need to account for the additional tax when planning events, which may affect consumer preferences for venue rentals.
This decision reflects the FBR’s continued focus on expanding its tax net by targeting sectors with significant economic activity, such as the event management and hospitality industries.
