In a statement issued on Friday, association president Rana Raees said that the tax will be collected from the party organising the event, separate from the hall's rental charges.

He clarified that marriage hall owners have "nothing to do with the withholding tax".

The decision was made following FBR directives to streamline tax collection in the sector, the association's president added.

The tax collection body faced a massive revenue shortfall in achieving the assigned target of Rs1,003 billion, as the total collection so far stands at around Rs855 billion for November 2024, reflecting a gap of Rs149 billion.

The FBR had made internal projections that it might face a shortfall of Rs321 billion for the first half (July-Dec) period, but the shortfall already exceeded this and stood at Rs338 billion in five months.

The FBR has collected Rs4.3 trillion in five months of FY2024-25. Now, it will have to fetch revenues of Rs1.71 trillion this month to achieve an indicative target of Rs6.009 trillion by December 31, 2024, under the IMF programme.