New taxes imposed on wedding halls as wedding season begins in Pakistan

PESHAWAR: The Khyber Pakhtunkhwa government has imposed new taxes on wedding halls across the province. The Khyber Pakhtunkhwa Revenue Authority has issued official directives on the collection of these taxes, categorizing the wedding halls into three based on their capacity.

KP Wedding Halls Categorized for Taxation

According to the KPRA, wedding halls in Khyber Pakhtunkhwa have been divided into three categories based on their seating capacity and will henceforth be levied fixed taxes on functions arranged at each venue. The latest tax structure will help increase the provincial revenue collection and also ensure that larger venues contribute more significantly.

Category A Wedding Halls: 100% Tax Increase

For marriage halls within Category A, with a seating capacity of more than 500 people, the fixed amount of tax will be increased by 100%.

Previously, the wedding halls were fined Rs25,000 per wedding, but under the new law, the tax on each wedding has been increased to Rs50,000.

Category B and C Wedding Halls: Incremental Changes

For category B wedding halls, that have the capacity for 300 to 500 guests, the fixed tax has been enhanced by Rs5,000, bringing the total tax per event to Rs20,000.

On the other hand, Category C wedding halls, which have a smaller capacity, will continue to pay the same tax of Rs10,000 per event without any increase in their tax burden.

Fixed tax implementation in KP’s recent budget

These new tax rates form part of the greater fiscal decisions taken in the recently passed provincial budget. According to a KPRA spokesperson, these taxes have been imposed in line with the budgetary decisions taken in July and thus took legal effect. These changes seek to satisfy the growing financial needs of the province while increasing revenue generation.

Penalties for Non-Compliance: 15% Service Tax

In case of non-payment, the KPRA has explained that a 15% service tax will be charged in case of failure to abide by the new fixed tax regulations by the individuals or marriage halls. This measure is intended to ensure strict adherence to the new taxation framework.