ISLAMABAD (Kashmir English): The Federal Board of Revenue (FBR) has reported a significant increase in tax collections from wedding ceremonies across the country as more attention has been paid to ensuring the collection of withholding tax.
According to official FBR documents, withholding tax deductions on weddings rose by 19 percent to Rs 2.2 billion during the fiscal year 2024–25, compared to Rs 1.7 billion collected in the previous year.
The increase of Rs 500 million has been attributed to strict supervision and improved documentation in the event management sector.
The FBR said that a significant increase in expenditure on weddings has been recorded in the three major cities of Karachi, Lahore, and Islamabad.
The FBR said that revenue is being collected under Section 236CB of the Income Tax Ordinance, 2001, which mandates advance tax collection from wedding halls, marquees, hotels, restaurants, clubs, and community centers.
According to the document, tax collections also include food, drinks, decorations, and other related services at ceremonies.
It was further informed that a 10% tax is levied on those included in the active tax list, while a 20% withholding tax is applicable on the marriage ceremonies of non-filers, which can be adjusted with the annual tax liability of tax filers.
According to FBR officials, the aim of focusing on marriage ceremonies is to document the undocumented sectors, which are a large source of income, but the majority try to stay outside the tax net.
Officials said that in the context of lavish spending on weddings, this sector could be an effective means of increasing revenue for the government.
