FBR-Federal board of Revenue, which directly works under the government of Pakistan, as directed by our Finance Minister Ishaq Dar, announced on Friday 19th August 2016 that 5% tax will be paid on all the events from now onwards. That includes large scale conferences, weddings, seminars, media events etc.
According to the bill imposed by the Federal Board of revenue,” On the total amount of bill produced at the end of the function at any wedding hall, community lawn, marquee or restaurant, hotel etc., a five percent of advance tax will be collected from the prescribed person”.
This tax will be collected by the owner of the property hall, marquee, restaurant or lawn according to the FBR notification under Section 236D of Income Tax Ordinance 2001. Five percent tax will also be collected from the event manager either he is providing food services or other event organizing services. This tax will then be paid in advance at the time of booking instead of paying at the end of the function as previously.
This alteration in the tax ordinance will be implied in all the marquees /marriage halls and other event organizing companies across Pakistan. FBR has already sent a notification to inform its regional offices regarding the alterations.
For the comprehension of common people this tax was already there since 2001 it’s just that government did some changes and now the event organizers have to pay the tax in advance instead of paying it at the end of the event.
The tax on mobile phone cards, motor vehicles, cosmetics, food, drinks, medicines and imported products wasn’t enough to suck the blood out of the citizens, yet government came up with another way to aggravate the people IN ADVANCE 😛 as if they will run away with the money 😉