Pakistan Sees Surge in Wedding Tax Collection as FBR Tightens Monitoring

Pakistan’s Federal Board of Revenue (FBR) has reported a significant rise in tax collection from wedding ceremonies, marking a 19% increase during the fiscal year 2024–25. The boost comes as authorities strengthen monitoring and documentation efforts across the country’s event management and hospitality sectors.

Wedding Taxes Bring in Over Rs2 Billion

According to FBR data, revenue from wedding-related taxes climbed to Rs2.02 billion, up from Rs1.70 billion last year — an increase of roughly Rs500 million. Officials credit this surge to tighter enforcement, particularly in major cities such as Karachi, Lahore, and Islamabad.

Under Section 236CB of the Income Tax Ordinance, taxes apply to a wide range of venues, including marquees, banquet halls, hotels, restaurants, clubs, and community centers that host wedding functions.

Broader Coverage Across Wedding Services

The crackdown extends beyond venues to include caterers, decorators, event planners, and other service providers. The law requires Active Taxpayers List (ATL) members to pay a 10% withholding tax, while non-filers face a 20% deduction. Filers can later adjust these payments against their annual tax liability.

Formalizing the Wedding Economy

Authorities say the initiative is part of a broader strategy to bring the wedding industry into the formal tax net and broaden the national tax base. By improving transparency and enforcing compliance, the FBR aims to ensure fair revenue collection from one of the country’s most active service sectors.