The tax will be collected at a rate of one percent of the total bill charged by these establishments
KARACHI: (UrduPoint /Pakistan Point News-June 5th, 2026) The Karachi Metropolitan Corporation (KMC) is preparing to introduce a new tax under the title of “Entertainment Tax,” which will be imposed on hotels, guest houses, lodges, marriage halls, marquees, marriage lawns, Airbnb properties and banquet facilities.
According to the proposed plan, the tax will be collected at a rate of one percent of the total bill charged by these establishments. KMC intends to seek approval for the levy in its upcoming budget for the next fiscal year.
Municipal Commissioner Abrar Jaffar has invited public feedback on the proposal, while a hearing on objections and suggestions has been scheduled for June 10 at the KMC head office.
In a statement, the municipal commissioner said the move is aimed at strengthening the financial position of KMC’s tourism department and improving related services. He added that a new category titled “Entertainment Tax – City Tourism and Hospitality,” along with its bylaws, is being incorporated into the existing tax framework.
He said that under the Sindh Local Government Act 2013, KMC has the authority to impose taxes, rates, tolls and fees. Objections regarding the proposed tax will be heard at the office of the Senior Director Coordination at the KMC Building.
Meanwhile, sources said opposition parties in the City Council have begun consultations on the proposed levy and are expected to announce their position soon. However, even if opposition members, including those from Jamaat-e-Islami, PTI and other groups, oppose the measure, the ruling PPP may be able to secure its approval through its majority in the council.
If approved, the new tax is expected to come into effect from the next fiscal year.
