Business

FBR imposes new tax on wedding halls

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Staff Reporter

ISLAMABAD: In a recent development, the Federal Board of Revenue (FBR) has imposed new tax on weddings and other events with wedding hall owners now collecting 10% withholding tax.

According to the president of the association, in addition to the rental fees, everyone who hosts events at wedding halls will now have to pay a 10% withholding tax which will be directly collected by  FBR.

The president stated, “This withholding tax is being implemented at the direction of the FBR and is separate from the rental cost of the wedding hall.” Customers will see a clear difference between the tax amount and the charges made by the facility.

The action is a component of the federal government’s larger tax reforms that were implemented as part of its agreement with the International Monetary Fund (IMF).

Although the new tax policy has already elicited conflicting responses from stakeholders, it is a reflection of continuous attempts to broaden the nation’s revenue base.

This development comes after the President of Wedding Halls Association and FBR agreed to same amount of withholding tax. The contract taxes are the main source of the Rs2.74 trillion in withholding taxes (WHT) that the FBR has collected so far this fiscal year.

 

Staff Reporter

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