The Federal Board of Revenue (FBR) has imposed a tax on wedding events, with owners of wedding halls announcing that they would collect a 10 per cent withholding tax on upcoming events.

In a meeting between FBR officials and a delegation from the Wedding Halls Association, an agreement was reached to implement the tax on wedding ceremonies.

“A percentage of withholding tax will also be applied to the booking of any event in wedding halls,” Wedding Halls Association President Rana Raees said.

This comes in response to directives from the FBR aimed at improving tax collection in the sector, according to the association’s president.

The country’s tax collection authority is grappling with a significant revenue shortfall, having achieved only Rs855 billion of its Rs1,003 billion target for November 2024, leaving a deficit of Rs149 billion.

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Internal projections indicated a potential shortfall of Rs321 billion for the first half of the fiscal year (July-December), but the actual shortfall has surpassed expectations, reaching Rs338 billion within just five months.

In total, the FBR has collected Rs4.3 trillion in the first five months of FY2024-25. To meet the indicative target of Rs6.009 trillion by December 31, 2024, under the IMF program, the agency will need to generate Rs1.71 trillion in revenue this month.