Islamabad, September 20, 2025 – The Federal Board of Revenue (FBR) has issued the updated withholding tax rates applicable on marriage functions during the tax year 2025-26. These rates have been outlined under Section 236CB of the Income Tax Ordinance, 2001.
According to the FBR, individuals listed on the Active Taxpayers List (ATL) will pay 10% of the total bill when arranging or holding a function. However, for those not on the ATL, the tax rate doubles to 20%. This measure applies to various venues including marriage halls, marquees, hotels, restaurants, commercial lawns, clubs, and other designated community spaces.
The law specifies that every prescribed person—such as an owner, lease-holder, operator, or manager of a marriage venue—must collect advance tax at the applicable rate. If food, services, or additional facilities are provided by another vendor, advance tax will also be collected on those charges. Importantly, the tax collected under these rules is adjustable against final tax liability.
For clarification, the ordinance defines “function” broadly to include weddings, seminars, workshops, exhibitions, concerts, parties, or any similar gathering. The key focus, however, remains on marriage events, which form a significant portion of such taxable functions in Pakistan.
Citizens are encouraged to review the latest FBR guidelines before arranging any marriage function to avoid penalties and ensure compliance with tax laws.