Bad news for people looking to travel abroad as all airlines have announced a substantial hike in the federal excise duty (FED) on tickets for international flights, effective from July 1. This increase follows the federal government’s recent budget announcement.
The new rates have been implemented by all major airlines, including Pakistan International Airlines (PIA), Saudi Air, and Emirates. The adjustment sees a 150% increase in the FED for economy and economy plus tickets. Consequently, passengers who were previously paying Rs5,000 in FED for economy tickets will now be required to pay Rs12,500.
The impact is also severe on premium-class travelers. The FED for Club Class tickets to the USA has risen dramatically, from Rs250,000 to Rs350,000. Similarly, duty on tickets to African and Middle Eastern destinations has increased from Rs75,000 to Rs105,000.
For flights to European cities, the FED has been elevated from Rs150,000 to Rs210,000. Travelers heading to Australia, New Zealand, and Far Eastern countries will now face a 40% increase, with the duty amounting to Rs210,000.
This rise in FED is expected to have a substantial impact on travel budgets and could deter many from flying internationally. Airlines have been swift to adjust their ticket pricing to reflect the new duties, affecting passengers booking tickets from July 1 onwards.
Travel industry experts anticipate that this sharp increase in FED could lead to a decline in international travel demand, particularly among price-sensitive travelers. The increase comes at a time when the travel industry is still recovering from the effects of the COVID-19 pandemic, making the hike particularly burdensome for both airlines and passengers.
The government’s decision to increase the FED is part of broader fiscal measures aimed at boosting revenue. However, it remains to be seen how this move will affect overall travel patterns and the aviation sector’s recovery in the coming months.
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I implore you as journalists to take action against this abhorrent nonsense. Flights have doubled for overseas Pakistani’s into the multiple of thousands for a basic economy class. We want to come home, spend and see our family.
This illegal Form 47 wants to fleece ordinary public. Bunch of chors and looters in government and uniforms.
Ordinary public usually doesn’t travel outside Pakistan on an airplane. 🤷♂️
G
It seems that want everyone to be out of country to send remittance and should not come back so that this bloody system keeps running all the time.
People in Pakistan act like this to evade tax . If you want to go abroad pay tax …
Will this increase effect tickets booked before 1 July 2024? PIA please reply.
There will be complete set back for tourism, once again PDM 2 involved in building motorways and airport instead of spending on Railways from loan…investment in Motorways and airport is a dead investment and carries more kickbacks
This increase in tax is only for air travelers for destinations outside Pakistan.
Pakistans Foreign Travels revenue should go down. domestic travel with go up considerably and that will ultimately be better for the domestic middle class travel industry. 2-3 star motels/hotels, Careem drivers, rent-a-car businesses, tour operators etc.
Travels who fly outside Pakistan also take spending money with them. Cash or a credit card. This money basically leave the local economy for good and ultimately hurts the local Pakistani businesses who rely on local travels.
What an idiot thing to say. There is quite a big chunk of people who DO come to Pakistan to visit but do not live there permanently, many western overseas Pakistanis are part of that pool, now they probably won’t come to Pakistan due to excessive cost of traveling out of that dump. Congratulations, you have successfully stopped people from visiting your shit hole.
پاکستان کے ائیر پورٹ سونے کے بنے ہیں لکھ دی لانت ایسے حکمرانوں پے جو سانس لینے پے بھی ٹیکس لگا رہے ہیں اورسیسز پہلے کیا کم پس رہے ہیں
No one to oppose these dogs , taxing as if you give anything in return. Stealing IMF money into you own bank accounts and then making the awam pay for it on interest. Utter nonsens, no shame , death penalty to all Pakistanis has been given by these boot polishers.
Our country is not running by Government running by IMF so these all coming from IMF taxs