KP budget proposes new tax of Rs50,000 on wedding halls

Peshawar: Instead of providing relief in the budget of Khyber Pakhtunkhwa for the fiscal year 2025-26, another financial blow has been prepared on the pockets of the people. In the proposed budget, a new tax of Rs50,000 has been proposed for each ceremony in marriage halls, which has caused great concern not only to the citizens but also to the owners of marriage halls.

Marriage halls already pay taxes to various federal and provincial institutions. Filers pay 10 percent tax to the Federal Bureau of Revenue (FBR), while non-filers pay up to 20 percent tax. In addition, the Khyber Pakhtunkhwa Revenue Authority collects 11 percent tax on each ceremony, which amounts to about Rs25,000.

Now, the proposed tax of another Rs50,000 is emerging as a new financial burden for the citizens and the business community.

A marriage hall owner in Peshawar said that due to inflation, people have limited their wedding ceremonies. Earlier, 500 guests were invited; now the same number has been limited to 200 to 300. The new tax will further hit their business.

People associated with the wedding hall industry say that this is a seasonal business, in which the owners have to pay salaries from their own pockets for six months. Now it will be difficult to extract another Rs50,000 from the public in the new season, which will not only affect business but may also increase unemployment.

If the provincial government finalizes this proposal, this decision may lead to a strong public reaction, especially at a time when economic pressure is already at its peak.