The Federal Board of Revenue (FBR) has recorded a 19 percent surge in tax collection from wedding functions across Pakistan, marking a significant improvement in the documentation and monitoring of the country’s multi-billion-rupee event industry.
According to official data, the FBR collected Rs2.02 billion in withholding taxes during the fiscal year 2024–25 up from Rs1.70 billion a year earlier showing an increase of nearly Rs500 million. Officials credited this growth to stricter enforcement of tax laws and enhanced scrutiny of event venues and service providers.
An FBR official, speaking on condition of anonymity, said the wedding and events sector has long operated outside the formal economy despite its rapid expansion. “Our focus is not to burden citizens, but to ensure that businesses contributing to this thriving industry also play their role in strengthening the national revenue system,” the official remarked.
The tax collection falls under Section 236CB of the Income Tax Ordinance, 2001, which empowers the FBR to impose advance tax on wedding functions. It applies to marquees, halls, hotels, restaurants, clubs, and community centres, as well as ancillary services such as catering, décor, photography, and event management.
Under this law, Active Taxpayers (ATL) are charged a 10 percent withholding tax, while non-filers face 20 percent on their total wedding expenses. For filers, the tax paid in advance is adjusted against their annual tax liability.
Officials further revealed that the highest increase in collections came from Karachi, Lahore, and Islamabad, where the country’s most lavish events are held. The FBR’s recent efforts are part of a broader strategy to bring unregulated sectors under the tax net and ensure fair contribution from all economic players.
“The aim is transparency and accountability,” another senior official added. “This initiative ensures that Pakistan’s growing event economy operates within the documented framework promoting fairness and fiscal stability in the long run.”
