Karachi, October 24, 2025 – The glitter and glamour of Karachi’s extravagant wedding season have turned into gold for the tax authorities, as the Large Taxpayers Unit (LTO) Karachi reported a whopping Rs757 million collection in withholding tax on marriages and social functions during the tax year 2025.
According to official data, the LTO Karachi — the premier revenue-generating arm of the Federal Board of Revenue (FBR) — recorded an 8% surge compared to Rs700 million collected in the previous fiscal year. The city’s tax contribution makes up a staggering 38% of the national total of Rs2.02 billion collected under this head.
The tax, enforced through Section 236CB of the Income Tax Ordinance, 2001 (introduced via the Finance Supplementary Act, 2023), targets payments made for grand events hosted in marriage halls, marquees, hotels, restaurants, and clubs. It also extends to catering, decoration, and other lavish arrangements that accompany Pakistan’s famously opulent weddings.
Under the current structure, individuals appearing on the Active Taxpayers List (ATL) face a 10% withholding tax, while non-filers are charged a hefty 20%. The amount collected is adjustable against their annual tax obligations.
Officials revealed that the FBR’s increased focus on high-end wedding celebrations forms part of its wider crackdown on untaxed sectors of the economy. With Karachi known for its luxury venues and big-budget festivities, the city has become a major contributor to the government’s tax net expansion efforts.
Authorities further stated that the FBR is actively collaborating with local administrations and event organizers to ensure precise reporting and efficient collection — making sure that every lavish event now pays its fair share to the national exchequer.