FBR collects PKR 1.7 billion in taxes from marriage functions in FY26's 7 months

Marriage functions and social gatherings across Pakistan generated PKR 1.70 billion ($6.1 million) in income tax revenue for the Federal Board of Revenue (FBR) during the first seven months of the current fiscal year, according to provisional official data.

The amount collected from July 2025 through January 2026 marked a 43% increase compared with PKR 1.20 billion raised during the same period of the previous fiscal year.

In January alone, income tax collection from marriage functions reached PKR 420 million, up 37% from PKR 307 million in January 2025, the data showed.

The FBR collects advance income tax on marriage functions and other gatherings under Section 236CB of the Income Tax Ordinance, 2001. The provision was introduced to improve documentation and boost revenue collection in sectors of Pakistan’s economy that remain largely undocumented.

Previously, withholding tax on marriage functions was collected under Section 236D, which was abolished through the Finance Act, 2020. The levy was reinstated under Section 236CB through the Finance (Supplementary) Act, 2023, as part of efforts to broaden the tax base and curb undocumented economic activity.

Tax experts say the withholding tax on marriage functions has become an increasingly important revenue source for the FBR, particularly in areas where large financial transactions often go unrecorded. The steady rise in collections reflects improved enforcement, higher compliance and increased monitoring of event-related expenditures.

The FBR has said it plans to further strengthen documentation measures and tighten compliance to ensure that high-value social events contribute more effectively to national revenue.