Further increase in withholding tax on weddings

Islamabad  (Web Desk): The federal government has increased the withholding tax on weddings across the country. According to the Federal Board of Revenue (FBR), there has been a 19% rise in the withholding tax deductions for weddings during the last fiscal year.

Documents reveal that in fiscal year 2025, the total withholding tax collected from weddings amounted to Rs. 2.2 billion, compared to Rs. 1.7 billion in the previous year. The FBR stated that the increase of Rs. 500 million in tax collection was primarily due to stricter monitoring and new measures introduced.

In cities like Karachi, Lahore, and Islamabad, taxes are being collected from wedding halls, marquees, and hotels. Additionally, advance taxes are being collected from restaurants, clubs, and community centers hosting events. Payments for food, decor, and other related services are also included in the tax collection.

Documents further highlight that individuals on the active taxpayer list are charged a 10% tax, while non-filers are subject to a 20% withholding tax on wedding expenses.

FBR clarified that the tax liability of filer taxpayers can be adjusted with their annual tax obligations. The primary aim of these stricter tax measures is to regularize the informal sectors and bring them under the tax net.