PESHAWAR – The Khyber Pakhtunkhwa (KP) government has implemented new taxes on wedding halls across the province.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) has issued official directives for the enforcement of these taxes, dividing wedding halls into three categories based on their capacity.
KP Wedding Halls Categorized for Taxation
According to KPRA, wedding halls in Khyber Pakhtunkhwa have been categorized into three groups based on their seating capacity, with each group now subject to fixed taxes for events hosted at the venue. The new tax structure will help increase the provincial revenue collection while ensuring that larger venues contribute more significantly.
Category A Wedding Halls: 100% Tax Increase
Wedding halls falling under Category A, with a seating capacity of over 500 people, will face a 100% increase in the fixed tax amount.
Previously, these wedding halls were charged Rs25,000 per event; however, under the new regulation, the tax per event has been raised to Rs50,000.
Category B and C Wedding Halls: Incremental Changes
For Category B wedding halls, which accommodate between 300 to 500 guests, the fixed tax has been increased by Rs5,000, bringing the total tax per event to Rs20,000.
On the other hand, Category C wedding halls, which have a smaller capacity, will continue to pay the same tax of Rs10,000 per event, with no increase in their tax burden.
Fixed Tax Implementation in KP’s Recent Budget
The new tax rates are part of the broader fiscal decisions made in the recent provincial budget. According to a spokesperson for KPRA, the taxes were enforced in accordance with the budgetary decisions made in July and are now legally binding. These changes aim to address the province’s growing financial needs while increasing revenue generation.
Penalties for Non-Compliance: 15% Service Tax
In case of non-payment, the KPRA has clarified that a 15% service tax will be levied on individuals or wedding halls that fail to comply with the new fixed tax regulations. This measure is intended to ensure strict adherence to the new taxation framework.
