The Karachi Metropolitan Corporation (KMC) has proposed a new tax on hotels, guest houses, marriage halls, Airbnb properties, and other hospitality businesses as part of efforts to strengthen municipal revenue and support tourism-related services in the city.
According to the advertisement by the KMC officials, a proposal has been prepared to impose a one percent tax on bills generated by hotels, guest houses, lodges, marriage halls, marquees, marriage lawns, banquet facilities, and Airbnb accommodations operating within Karachi.
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The proposed levy has been introduced under a new category titled “Entertainment Tax – City Tourism and Hospitality” and is expected to become part of the upcoming municipal budget if approved by the City Council.
KMC Metropolitan Commissioner Abrar Ahmad Jaffer has invited stakeholders, business owners, and members of the public to submit objections, recommendations, and feedback on the proposed tax.
A public hearing has been scheduled for June 10 at 3:00 PM at the office of the Director (Coordination), KMC Headquarters on M.A. Jinnah Road, Karachi.
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Municipal authorities say the objective of the new tax is to improve the financial capacity of the city’s tourism department and help fund enhanced tourism and hospitality-related services.
Officials believe the measure could create additional revenue streams to support civic development and tourism promotion initiatives across Karachi.
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The proposal has already generated political debate within the Karachi City Council. Opposition parties, including Jamaat-e-Islami and PTI-backed council members, are reportedly reviewing the proposal and consulting stakeholders before announcing their formal position.
If approved, the tax would place an additional financial burden on businesses operating in Karachi’s hospitality and event management sectors.
Industry stakeholders are expected to present their concerns during the scheduled consultation process.
