Government Imposes 10% Withholding Tax on Wedding Functions, Adding to Inflation Woes
Islamabad:Amid rising inflation, the government has now introduced a new challenge for the public by imposing a 10% withholding tax on wedding functions. This move has sparked concerns among the masses, already struggling with the financial burden of everyday life.
According to media reports, the Federal Board of Revenue (FBR) has announced that wedding halls will be required to collect a 10% withholding tax on bookings. However, the wedding halls themselves will not pay this tax; rather, it will be collected from customers.
FBR officials met with a delegation from the Wedding Hall Association to discuss the implementation of the tax. During the meeting, an agreement was reached on how the 10% withholding tax would be collected from customers booking wedding venues. Rana Raees, President of the Wedding Hall Association, clarified that the 10% withholding tax would be charged on top of the venue rental fee. He also emphasized that the wedding hall owners themselves would not be responsible for the withholding tax but would merely collect it from the customers.
Raees appealed to citizens organizing wedding functions to be aware of the FBR’s policy regarding the withholding tax. He assured the public that the tax collection was in line with instructions from FBR authorities.
It is worth noting that the imposition of the 10% withholding tax on wedding functions was proposed in the annual budget for the fiscal year 2024-2025. The proposal has now been implemented, adding an additional financial burden to families already dealing with inflation.
Aftab Ahmad Khan, Chief Commissioner of the Inland Revenue Regional Tax Office in Rawalpindi, also clarified that the 10% withholding tax has been levied on customers, not wedding halls. He explained that since this is a new tax, the public may not be fully aware of the changes, leading to confusion. The FBR, he added, will soon launch an awareness campaign to educate the public about the new tax policy.
