The Karachi Metropolitan Corporation has finalized preparations to introduce a new entertainment tax, which is expected to be included in the upcoming municipal budget.
Under the proposed plan, hotels, guest houses, lodges, marriage halls, marquees, marriage lawns, Airbnb accommodations, and banquet facilities will be charged a one percent tax on the total bill amount.
The tax is being introduced under the category of “City Tourism and Hospitality Tax” with the objective of strengthening financial resources related to tourism and hospitality services in Karachi.
Municipal Commissioner Abrar Jaffer has invited public feedback and objections regarding the proposed tax, with a public hearing scheduled for June 10 at the KMC headquarters.
According to city officials, the Sindh Local Government Act 2013 authorizes the Karachi Metropolitan Corporation to impose taxes, fees, and other municipal charges.
Meanwhile, opposition parties in the City Council have begun consultations on the proposal. Representatives of Jamaat-e-Islami, Pakistan Tehreek-e-Insaf, and other opposition groups are expected to announce their position soon.
However, sources indicate that even if opposition parties resist the measure, the Pakistan Peoples Party may be able to secure approval through its majority in the council, paving the way for implementation in the next fiscal year.
