The Karachi Metropolitan Corporation (KMC) has completed preparations to introduce a new tax targeting hotels, guest houses, marriage halls, Airbnb properties, and other hospitality businesses in the city.
Under the proposal, KMC plans to levy a 1 percent tax on bills generated by hotels, guest houses, lodges, marriage halls, marquees, marriage lawns, marriage banquet facilities, and Airbnb accommodations. The levy has been proposed under a new category titled “Entertainment Tax – City Tourism and Hospitality.”
Municipal Commissioner Syed Afzal Zaidi? (Need verify name from source? Actually source says Abrar Jaffar) Abrar Ahmed Jaffar has invited public feedback on the proposal, with a hearing on objections and recommendations scheduled for June 10 at the KMC head office.
According to KMC, the proposed tax is intended to strengthen the financial position of the city’s tourism department and support the provision of improved tourism and hospitality-related services.
Officials say the new levy and its accompanying bylaws will be incorporated into the upcoming municipal budget for approval. The proposal has been introduced under the powers granted to local governments through the Sindh Local Government Act 2013, which allows KMC to impose taxes, fees, rates, and tolls.
The proposal is already drawing political attention within the City Council. Sources said opposition parties, including Jamaat-e-Islami, PTI-backed members, and other council representatives, have begun consultations on the measure and are expected to announce their position in the coming days.
However, even if opposition members object to the proposal, KMC is believed to have sufficient numbers in the council to secure approval of the tax through a majority vote.
If approved as part of the next municipal budget, the new levy could come into effect during the upcoming fiscal year, adding a fresh tax burden on Karachi’s hospitality and event management sectors.
