Islamabad, July 11, 2025 – Planning a wedding in Islamabad this year? You might want to take a closer look at the latest tax update! The Federal Board of Revenue (FBR) has officially notified revised tax rates on services provided by marriage halls and related venues for the fiscal year 2025-26.
According to the newly issued Islamabad Capital Territory (Tax on Services) Ordinance, 2001, updated under the Finance Act, 2025, a 5% tax will now apply to services offered by marriage halls, lawns, “pandal” and “shamiana” setups, and caterers. But here’s the catch: this lower rate comes with a condition—no input tax adjustment or refund will be allowed.
Thinking of booking a hotel or farmhouse for your big day? Be ready to face the standard 15% tax if the service doesn’t qualify for the lower rate. This higher tax rate covers services provided by marriage halls, hotels, motels, guest houses, farmhouses, clubs, and caterers where the conditions for reduced tax are not met.
If your wedding or reception includes food from restaurants, cafes, or ice cream parlors, there’s more to note. Payments made digitally—via debit/credit cards, mobile wallets, or QR codes—will be taxed at 5%, again without any option for input tax adjustment or refund. However, if you’re paying in cash, the tax rate shoots up to 15%.
For event planners, families, and marriage halls operators in Islamabad, these changes have significant implications. This move aims to promote digital payments while widening the tax net on the booming wedding and hospitality industry.
With weddings being grand affairs in Islamabad, it’s essential for both hosts and service providers, especially marriage halls, to be aware of these rates to avoid unexpected financial hiccups. Whether you’re finalizing a marriage hall, booking a catering service, or selecting a scenic lawn, factor in these new tax rules as part of your event planning checklist.
So, before you send out those wedding invites, make sure your venue and vendors are clear on how these tax changes apply. Islamabad’s marriage halls scene just got a lot more tax-savvy!