Karachi, July 20, 2024 – The Sindh Revenue Board (SRB) has officially notified the sales tax rates applicable to services provided by marriage halls and lawns for the tax year 2024-25.
This follows the issuance of the working tariff for the tax year 2025, which incorporates the amendments made to the provincial Finance Act of 2024.
The SRB announced that from July 1, 2024, a standard sales tax rate of 15 percent will be applied to services rendered by marriage halls and lawns. This update is part of the broader adjustments made in the Finance Act to streamline and modernize tax administration within the province.
However, in an effort to support smaller establishments, the SRB has provided an exemption from this sales tax for services offered by marriage halls and lawns situated on plots measuring 800 square yards or less. This exemption is designed to alleviate the tax burden on smaller businesses and encourage their growth and sustainability.
Despite this exemption, there are specific conditions under which it does not apply. The SRB outlined the following scenarios where the exemption is nullified:
1. Air-conditioned Facilities: If the marriage halls and lawns are air-conditioned at any time during the financial year, the exemption does not apply.
2. Location within Taxable Premises: If the marriage halls and lawns are located within buildings, premises, or precincts of establishments such as hotels, motels, guest houses, farmhouses, restaurants, or clubs that are liable to tax, they will not be exempt.
3. Caterer-owned Establishments: Marriage halls and lawns owned, managed, or operated by caterers whose services are liable to tax are not eligible for the exemption.
4. Franchised Operations: Halls and lawns that are either franchisers or franchisees are also excluded from the exemption.
5. Multiple Branches: Establishments with branches or more than one hall or lawn in Sindh will not benefit from the exemption.
This notification aims to bring clarity and uniformity in the taxation of services provided by marriage halls and lawns, ensuring that all stakeholders are aware of their tax obligations. The SRB’s move is expected to have a significant impact on the operations of these venues, particularly in how they manage their facilities and services to either qualify for the exemption or comply with the standard tax rate.
The new tax regime reflects the SRB’s commitment to enhancing revenue collection while providing necessary exemptions to support smaller enterprises. As the implementation of these changes begins, it will be crucial for marriage hall and lawn operators to review their operations and ensure compliance with the updated regulations.