amilies booking wedding venues in Lahore are increasingly receiving unexpected calls from the Federal Board of Revenue, asking for details about the number of guests and event expenses. The practice has cast a shadow over celebrations across Pakistan.

Under a recently enforced advance, adjustable withholding tax provision, the FBR is seeking information on events held at wedding halls, marquees, hotels, restaurants, clubs and community centres, as well as related services such as catering and decoration.

The tax is charged to the person booking the event, not the venue, and is calculated as a percentage of the bill.

For some families, the policy has taken an emotional toll. Among them is Hassan Ishaq, a newly married banker from Lahore’s Gulberg area, who says the tax demand spoiled his wedding.

“Arranging a wedding reception now feels like being persecuted by tax officials,” says Muhammad Ishaq, the father of the groom.

“We visited at least four halls. Every hall owner told us they could not take responsibility for the withholding tax. This meant the customer had to deal with the FBR staff directly.

Ishaq says the valima for 150 guests cost the family around Rs 200,000. “At a per-head rate of Rs1,200, the total came to about Rs 200,000. On top of that, I had to pay Rs 20,000 as withholding tax,” he says.

The family had hoped to avoid the additional charge but that was not to be.

Khurrum Shahzad, information secretary of the Lahore Marriage Hall Association, says disputes over who should bear the withholding tax have become routine. “It has become a common scene, customers arguing with hall........

© The News on Sunday