Islamabad, February 11, 2026 – Marriage functions and social gatherings held across Pakistan generated Rs1.70 billion in income tax revenue for the Federal Board of Revenue (FBR) during the first seven months (July 2025 – January 2026) of the current fiscal year.
Tax Collection Rises 43%
According to provisional data, the FBR collected Rs1.7 billion from marriage functions and related events in 7MFY26, compared with Rs1.20 billion in the same period of the previous fiscal year, reflecting a 43% year-on-year growth.
In January 2026 alone, income tax collection from marriage functions reached Rs420 million, registering a 37% increase over Rs307 million collected in January 2025.
Legal Framework: Section 236CB
The FBR collects advance income tax on marriage functions and other gatherings under Section 236CB of the Income Tax Ordinance, 2001. This provision was introduced to improve documentation and enhance revenue collection from Pakistan’s largely undocumented economy.
Previously, withholding tax on marriage functions was collected under Section 236D, which was abolished through the Finance Act, 2020. However, recognizing the need to widen the tax base and curb undocumented economic activity, the government reinstated the levy through Section 236CB via the Finance (Supplementary) Act, 2023.
Boosting Documentation and Revenue
Tax experts say that withholding tax on marriage functions has become a key revenue stream for the FBR, especially in sectors where financial transactions remain largely undocumented. The steady rise in collections reflects improved enforcement, higher compliance, and increased monitoring of event-related spending.
The FBR aims to further strengthen documentation and expand the tax base by tightening compliance measures, ensuring that high-value social events contribute fairly to national revenue.