The Federal Board of Revenue (FBR) has initiated a comprehensive audit of marriage halls across Karachi to enhance tax compliance and boost revenue collection.
According to a news report, officials from Regional Tax Offices (RTO) I and II conducted surprise inspections on Thursday, targeting venues in Shahra-e-Faisal, Nursery, PECHS, and Gulshan-e-Iqbal.
FBR teams gathered records of ceremonies held throughout the year, along with withholding tax receipts, from marriage hall owners. These data will be provided to chief commissioners for further review.
An assistant commissioner confirmed that an FBR audit team would analyze income records from these halls, focusing on revenue generated from wedding ceremonies.
Marriage hall owners have expressed concerns over the unexpected inspections and are considering reaching out to the FBR chairman to address their anxieties, fearing additional financial scrutiny.
The initiative follows the introduction of a 10% withholding tax on wedding events earlier this month. This tax, applicable to booking parties rather than hall owners, is intended to address the FBR’s mounting revenue shortfall, which has already exceeded Rs356 billion in the first five months of the fiscal year.
The 10% withholding tax was finalized earlier this month after consultations between FBR officials and the Wedding Hall Association. Association President Rana Rais clarified that the tax would be collected directly from the booking parties and added to the rental charges. He emphasized that hall owners would not bear this tax burden.
The initiative is part of the FBR’s broader strategy to boost revenue amid pressure from the IMF. The board is also considering additional revenue measures or a mini-budget to address its fiscal deficit if collections fail to meet December’s targets.
This audit signals the FBR’s intensified efforts to ensure compliance and bridge Pakistan’s growing fiscal gap. The results of this initiative could have significant implications for tax enforcement in the hospitality sector.
