Wedding expenses are continuously rising due to inflation. Organizing a ceremony for relatives and loved ones—especially in a wedding hall or marquee—now also means bearing additional taxes along with venue rent. Do you know how much tax will be applicable on such events in tax year 2026? You must be aware.
Section 236CB of the Income Tax Ordinance, 2001 (updated for tax year 2026) deals with advance tax on functions and gatherings. It states that a prescribed person shall collect advance tax at the specified rate on the total bill from a person arranging or holding a function at a marriage hall, marquee, hotel, restaurant, commercial lawn, club, community place, or any other such venue.
Planning a wedding in Pakistan in 2026?
Before you book a marriage hall or marquee, it’s important to understand the advance tax on wedding functions imposed by the Federal Board of Revenue (FBR). With inflation already driving up wedding costs, this tax can significantly increase your total bill.
Let’s break it down in a simple, interactive way.
📌 What Is Wedding Function Tax?
Under Section 236CB of the Income Tax Ordinance, 2001, the government collects advance adjustable tax on marriage-related events and other gatherings.
This tax applies to events held at:
• Marriage halls & marquees
• Hotels & restaurants
• Commercial lawns
• Clubs & community centers
• Any venue used for wedding functions
💍 What Counts as a “Function”?
According to the law, a function includes:
• Wedding ceremonies (nikah, walima, mehndi, barat)
• Engagement parties
• Seminars, workshops, exhibitions
• Concerts, shows, and private parties
👉 If it’s a gathering at a paid venue, tax applies.
👤 Who Collects This Tax?
The tax is collected by the “prescribed person”, which includes:
• Owner or manager of the marriage hall or marquee
• Hotel or restaurant operator
• Lawn or club management
You don’t pay FBR directly—the venue collects it from you and deposits it.
💰 Wedding Tax Rates for Tax Year 2026
| Taxpayer Status | Tax Rate on Total Bill |
| ATL (Filer) | 10% |
| Non-ATL (Non-Filer) | 20% (100% higher) |
🔴 Example
If your wedding bill is Rs1,000,000:
• ATL person pays Rs100,000 tax
• Non-ATL person pays Rs200,000 tax
🔄 Is This Tax Adjustable?
Yes ✅
The advance tax collected under Section 236CB is adjustable, meaning:
• Filers can adjust it against their annual income tax liability
• Non-filers usually bear it as an additional cost
✅ How to Reduce Wedding Tax Legally?
✔ Become an ATL filer before booking
✔ Ensure your NTN is active
✔ Ask the venue for a proper tax invoice
✔ Keep records for tax adjustment
📢 Final Takeaway
Wedding celebrations in Pakistan now come with a significant tax burden, especially for non-filers. If you’re planning a marriage event in 2026, becoming an Active Taxpayer can save you hundreds of thousands of rupees.
💡 Tip: Always confirm tax details with the venue before signing the booking agreement.
Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and rates may change, and their application can vary based on individual circumstances. Readers are advised to consult the Federal Board of Revenue (FBR), relevant tax laws, or a qualified tax professional before making any financial or legal decisions related to wedding or function taxes.