ISLAMABAD: The Federal Board of Revenue (FBR) has imposed a 10% adjustable withholding tax on marriage functions and other social gatherings under the updated Income Tax Ordinance, 2001, applicable to Tax Year (TY) 2027, starting from July 1. 2026.
The updated Income Tax Ordinance, incorporating amendments introduced through the Finance Act, 2026, provides that advance tax will be collected on the total bill of specified functions held at designated venues.
Advance tax to be collected on event bills
Under Section 236CB of the Income Tax Ordinance, every prescribed person is required to collect advance tax at the rate specified in the First Schedule from any person arranging or holding a function at:
• Marriage halls
• Marquees
• Hotels
• Restaurants
• Commercial lawns
• Clubs
• Community centres
• Any other venue used for such functions
The tax will be collected on the total amount of the bill charged for the event and will be adjustable against the taxpayer’s final income tax liability.
Catering and related services also covered
The law also extends the withholding tax requirement to payments for food, catering, decoration and other services provided by third-party vendors.
Where such services are supplied by another service provider, the prescribed person operating the venue must collect advance tax on the payments made for those services at the prescribed rate.
