On Friday, the Federal Broad of Revenue (FBR) imposed 5% advance tax on different functions including wedding and concert. The tax has been levied under Section 236D of the Income Tax Ordinance 2001.
The notification of FBR stated:
“Every prescribed person shall collect advance tax at the rate of 5% on the total amount of the bill”
It is pertinent to mention that the tax will be applicable on bills for holding any kind of function at club, commercial lawn, community place, hotel, restaurant, marquee, wedding hall or any such place used for such purpose for holding an event.
Events to be taxed
According to the FBR, the tax will be levied on the following events:
7- Any gathering at the aforementioned places
The notification further states that any place where food is served, any similar service or facility is provided by a person or commercial entity, the service provider will collect a 5 percent advance tax on the total payment of such food, service or facility from the person conducting or organizing the event/function.
This additional tax is further going to burden the general public. It holds plenty of relevance to state that the government already charges sales tax at restaurants and other similar providers. Since the announcement of budget, the people of Pakistan are continuously getting mini budgets with tax implementations on daily activities.
Do you think this 5% advance tax will add further problem in the life of a common individual in Pakistan?
Source: Dunya News