The 5pc advance tax will be collected by the owner, lease-holder, operator, or manager of the venue where the event is being held
ISLAMABAD: The Federal Board of Revenue (FBR) has imposed a 5 percent advance sales tax on different functions, including weddings, seminars, workshops, exhibitions, concerts, parties, or any other gatherings at private hotels or commercial venues.
According to an FBR notification under Section 236D of Income Tax Ordinance 2001, advance tax at the rate of five percent will be collected on the "total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose".
The advance tax will be collected by the owner, lease-holder, operator, or manager of the venue where the event is being held.
An advance 5 percent tax will also be collected from the person arranging the function on the food, service or other facility provided by a person or company other than the owner, lease-holder, operator, or manager of the venue.
Sources in the FBR told Geo News that the bureau previously collected tax from marriage halls on their income after the end of the event. But the venue's owners and managers will now have to pay the tax at the time of booking.
The changes in the tax ordinance are likely to impact marriage rentals of marriage halls and lawns across the country.
The FBR has notified all of its regional offices of the changes.