Section 236CB of the Income Tax Ordinance requires advance tax collection on venue bills and separately provided food and services, with the tax remaining adjustable.

The Federal Board of Revenue (FBR) has imposed advance income tax on weddings, functions and other gatherings for tax year 2027, covering events held at marriage halls, hotels, restaurants and other commercial venues.

Under Section 236CB of the Income Tax Ordinance, 2001, updated up to June 30, 2026, prescribed persons must collect advance tax on the total bill charged to individuals arranging or holding functions.

The provision applies during tax year 2027, covering the period from July 1, 2026, to June 30, 2027.

The tax applies to functions organised at marriage halls, marquees, hotels, restaurants, commercial lawns, clubs, community places and other venues used for such purposes.

Section 236CB also requires advance tax collection where food, services or other facilities are provided by a separate service provider. In such cases, tax must be collected on the payments made for those services.

The law defines functions broadly, including weddings and related events, seminars, workshops, sessions, exhibitions, concerts, shows, parties and other gatherings.

The prescribed persons responsible for collecting the tax include owners, leaseholders, operators and managers of the relevant venues.

Importantly, advance tax collected under Section 236CB is adjustable, meaning taxpayers can adjust the amount against their income tax liability in accordance with applicable provisions.

The FBR has specified that collection rates will be determined under Division XI of Part IV of the First Schedule to the Income Tax Ordinance, 2001.