The Federal Board of Revenue (FBR) has reported a 19% increase in withholding tax collection from weddings during the fiscal year 2024–25, reflecting improved compliance and growing formalization in Pakistan’s event management industry.
According to official FBR data, Rs2.02 billion was collected in FY25 compared to Rs1.70 billion in the previous year. The rise is attributed to stricter enforcement and higher spending on extravagant weddings, particularly in Karachi, Lahore, and Islamabad.
The tax, imposed under Section 236CB of the Income Tax Ordinance, 2001, and introduced through the Finance (Supplementary) Act, 2023, requires advance tax collection from organizers of wedding events in marquees, hotels, clubs, restaurants, and community centers. It also covers related services such as food, décor, and other event arrangements.
Under the current structure, Active Taxpayers List (ATL) filers are charged 10%, while non-filers face a 20% withholding rate. The tax collected is adjustable against the filer’s annual income tax liability.
Officials stated that monitoring the wedding industry is part of the FBR’s broader effort to document high-revenue informal sectors. Lavish weddings, often involving millions in spending, present a substantial opportunity to broaden the tax base.
In Karachi, authorities noted a sharp increase in tax receipts due to the growing number of luxury weddings hosted at high-end venues. The FBR continues to work with local administrations and event organizers to ensure accurate declarations and efficient tax collection.
Experts believe this trend could promote greater transparency and documentation within the event planning sector—helping the government capture fair revenue from one of Pakistan’s most vibrant and lucrative industries.
