Arranging Functions and Gatherings in Karachi Just Got More Expensive

Any person who wishes to plan a gathering, a marriage or any sort of social function in a lawn or a hall is now bound to pay an advance tax of 5% of the total they paid as rent for the premises in Karachi.

This has been notified by the Federal Board of Revenue (FBR) as part of the recently issued Withholding Tax Card 2017/2018.

About Withholding Tax Card 2017/2018

Under Section 236D (1) of the Income Tax Ordinance, 2001, the Withholding Tax Card 2017/2018 issued by the FBR requires five percent advance tax on functions and gatherings.

The agents responsible for collecting the payment may collect the advance tax from the person arranging or holding the event in any of the following places:

  • Marriage hall
  • Marquee
  • Hotel
  • Restaurant
  • Commercial lawn
  • Clubs
  • Community place

It should be mentioned here that as per FBR’s rules, the tax needs to be collected at the time when an individual pays the bill for booking a venue. The tax is applicable at any of the above places which are booked for the purpose of holding a function.

Tax On Food And Other Services

If that wasn’t enough, Section 236D (2) of the Income Tax Ordinance states that witholding agents are also required to collect a 5% tax on food services.

Furthermore, this tax is also applicable on any other services that are availed by the event organizers.

However the advance tax in both the cases is adjustable against the total liability of a taxpayer.

Via PKRevenue

  • Matlab kuch bhi utha k post kr do… Is this any personal agenda?

    Dear Mr. Khushbakht Siddiqui

    Facts stated by you are not wrong but incomplete. This tax is not newly inserted. It has been been there since July 1, 2013 and as you said is adjustable which means it is not any extra tax but your regular tax collected in advance through other means that you would have to pay eventually with return.

    For those who are still confused…
    Bhai kuch naya nhn h yeh… 2013 se laga hua h yeh tax aur aapki liability se adjustable h just like tax on motor vehicle tax(rs800), tax on mobile (14%), tax on ptcl (10%), tax on cash withdrawal (0.6%) etc.

  • Jaha Log Banquet Par 100,000 Rupee Laga Dete Hai to 5% Dene Par Kiya Hoga :
    Aur Rahi Bat Ghareebo Ki Unko Jo PRICE Bataya Jayega LAWN Wale Tax Included Kar K Batange :
    No Cross Checking No Records No E-Filing By Lawn & Banquet (Chai Pani Par Sub Chalta Rehta hai)

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