Pakistan has recorded a significant increase in tax collection from wedding ceremonies, as authorities strengthened enforcement of withholding taxes across the country.
According to data from the Federal Board of Revenue FBR, collections from the wedding sector rose by 19% in the fiscal year 2024–25, reaching Rs. 2.02 billion compared to Rs. 1.70 billion last year an increase of nearly Rs. 500 million.
Officials credit this growth to better documentation and tighter monitoring of wedding-related activities, particularly in major cities such as Karachi, Lahore, and Islamabad.
The tax is collected under Section 236CB, which applies to all venues hosting wedding events, including banquet halls, hotels, marquees, clubs, restaurants, and community centers.
The FBR has also expanded its monitoring to cover services linked to wedding functions, such as catering, decoration, event management, and vendor services.
Under the regulations, individuals listed in the Active Taxpayers List (ATL) are required to pay a 10% withholding tax while non-filers are charged 20%. Filers can later adjust the amount against their annual tax liability.
Officials say the initiative is part of the government’s broader strategy to formalize Pakistan’s large informal economy. By bringing wedding-related expenses into the tax net, the FBR aims to ensure better transparency, widen the tax base, and promote voluntary compliance.
The steady rise in tax collection from this sector reflects the success of increased monitoring and compliance measures.
Authorities believe that continued enforcement and awareness will help sustain this growth in the coming years, strengthening the country’s overall tax revenue system.
