Pakistan's Massive Wedding Industry Operates Largely Informal - Bringing It Into Tax Net Could Boost Revenues
• Over Rs110 billion is estimated to be spent on weddings annually in Pakistan
• The wedding industry has a significant economic impact, both direct (locations, catering, clothes, etc.) and indirect (supply chains)
• The wedding industry operates largely informally and in cash to avoid taxes
• Bringing the wedding industry into the formal economy could expand the tax net and increase government revenue
• Incentivizing wedding vendors to formalize through discounts and minimal tax rates may be more effective than strictly punitive measures