Khyber Pakhtunkhwa Wedding Halls Face Tax Choice: Fixed Rate or Percentage

Wedding halls in Khyber Pakhtunkhwa (KPK) now have a chance to simplify their tax obligations with a new fixed tax regime introduced by the Khyber Pakhtunkhwa Revenue Authority (KPRA). This alternative to the existing percentage-based sales tax system applies to wedding hall owners, lawns, pandals, and shamiana service providers in the province.

Benefits of the Fixed Tax Regime:

  • Simplified Tax Payment: The fixed tax regime aims to streamline tax payments for wedding halls, saving time and resources compared to calculating and filing percentage-based sales tax.
  • Reduced Compliance Costs: Opting for the fixed regime can potentially reduce compliance costs associated with record-keeping and tax filing under the previous system.
  • Improved Administrative Efficiency: The KPRA expects the fixed tax regime to improve overall tax collection efficiency, reducing the need for extensive audits and enforcement measures.
  • Potentially Lower Tax Rates: The new fixed tax rates are reportedly lower than the previously applicable 8% sales tax on wedding services.

Categorized Tax Rates for Fairness:

The new fixed tax regime introduces tiered rates based on the wedding hall’s seating capacity, categorized as follows:

  • Category-A: Wedding halls with the highest seating capacity
  • Category-B: Medium-sized wedding halls
  • Category-C: Smaller wedding halls with the lowest seating capacity

Choosing the Fixed Tax Regime:

Wedding hall owners have until June 25th, 2024, to decide whether to opt for the new fixed tax regime. They can submit their choice electronically through a dedicated form available on the KPRA website.

Default Option and Potential Consequences:

Businesses that don’t choose the fixed regime by the deadline will automatically default to the higher 11% sales tax rate based on the actual value of their services. This could lead to a higher tax burden compared to the fixed rate option. Additionally, they may face increased scrutiny through tax audits from the KPRA.


Wedding hall owners in Khyber Pakhtunkhwa are advised to carefully evaluate their financial situation, projected revenue, and wedding hall category to determine if the fixed tax regime offers a more cost-effective solution. Consulting a tax advisor can be beneficial in understanding the specific implications of each option and making an informed decision that considers both tax rates and seating capacity categories.

Leave a Reply

Your email address will not be published. Required fields are marked *