Federal Excise Duty (FED) For International Air Tickets Increased

[Abbas Ali]

Federal Excise Duty (FED) rates have been raised for economy and economy-plus foreign travel tickets. The tax rates for other classes were raised by 40 percent. The new rates will take effect from July 1, 2024.

The FED rate differs for club, business and first-class flight tickets issued to International Air Transport Association (IATA) Traffic Conference (TC) Areas 1–3.

Middle East and Africa

FED rate will be PKR 150,000 for air tickets to IATA Traffic Conference Area 2 (Middle East and Africa)

Europe

FED rate will be PKR 210,000 for air tickets to IATA Traffic Conference Area 2 (Europe).

Far East, Australia, New Zealand and Pacific Islands

FED rate will be PKR 210,000 for air tickets to IATA Traffic Conference Area 3 (Far East, Australia, New Zealand and Pacific Islands)

North, Central and South America

FED rate will be PKR 350,000 for air tickets to IATA Traffic Conference Area 1 (North, Central and South America)

Source: https://www.dawn.com/news/amp/1842651

[Abbas Ali]

Year 2023 FED rates for international tickets

Middle East and Africa

PKR 75,000 for air tickets to IATA Traffic Conference Area 2 (Middle East and Africa)

Europe

PKR 150,000 for air tickets to IATA Traffic Conference Area 2 (Europe).

Far East, Australia, New Zealand and Pacific Islands

PKR 150,000 for air tickets to IATA Traffic Conference Area 3 (Far East, Australia, New Zealand and Pacific Islands)

North, Central and South America

PKR 250,000 for air tickets to IATA Traffic Conference Area 1 (North, Central and South America)

Source: https://www.brecorder.com/news/40227551

[avgeek125]

Hi Guys

Does the this increase in ticket tax will effect the tickets bought before 1 July 2024 or after. Would some one please clarify as my brother is flying out of lahore on 6th July travelling to Dublin via Turkish.

[Abbas Ali]

^ Enhanced rate of Federal Excise Duty (FED) not applicable on air tickets already issued before July 1, 2024.

Abbas

[ahsan22]

I remember once I had to pay at the airport checkin. The staff would not issue the boarding pass. That too on a return flight from Pakistan. I must admit I did not want any fuss so just paid it. Is there an official document that we can point to which says the new rule doesn’t apply retrospectively as will be travelling again later in the year and have purchased the ticket.

[Abbas Ali]

FED is chargeable at the time/date of issuance of air ticket.

When FED on international tickets was increased in year 2022, FBR clarified that new FED rate is not applicable on international air tickets already issued before July 1, 2022. That clarification can be seen on FBR website on following link:

https://fbr.gov.pk/pr/fbr-clarifies-abo ... anc/173494

I believe the same rule is followed this year.

Abbas

[t_kaay]

FED is chargeable at the time/date of issuance of air ticket.

When FED on international tickets was increased in year 2022, FBR clarified that new FED rate is not applicable on international air tickets already issued before July 1, 2022. That clarification can be seen on FBR website on following link:

https://fbr.gov.pk/pr/fbr-clarifies-abo ... anc/173494

I believe the same rule is followed this year.

Abbas

Is there a similar official notice that confirms this for this year? I'm due to travel in December but my ticket was issued in June so I should be exempt. I'd like some reference I can show them when they demand it from me at check in, when I'm there in December.

[Abbas Ali]

FBR may issue clarification in case of confusion in FED amount collection.

In Year 2022, Government of Pakistan instructed airlines to refund extra amount of FED collected from passengers for tickets purchased before July 1, 2022, for travel on or after July 1, 2022.

That notification can still be viewed on Pakistan CAA website https://caapakistan.com.pk/

FED Refund to Passengers

INTERNATIONAL TRAVELLING PASSENGERS

It is informed that airlines charged extra amount of FED from passengers travelling on Business/First class who had purchased tickets before the 01st of July, 2022, For travel on or after 1st July, 2022.

As per government of Pakistan's instructions, airlines have been directed to refund erroneously collected amount of PKR 40,000 per passenger. All such passengers are requested to contact their respective airline office at the earliest for the refund of excess FED paid to the airline.

Abbas

[faisal-777]

Airline booking systems have updated prices for flights to Pakistan now, almost doubled

[fawad]

It appears that DXB-ISB-DXB is significantly cheaper than ISB-DXB-ISB and is a similar story for any other airport like IST, KLIA, or LHR. Does this have to do with flights originating from Pakistan or just the seasonal pricing factor?

[Abbas Ali]

Federal Board of Revenue (FBR) will charge fixed amount of Federal Excise Duty (FED) of PKR 5,000 per ticket from passengers with labor visa traveling from Pakistan to Gulf Cooperation Council (GCC) member states.

GCC member states include:

Saudi Arabia
United Arab Emirates (UAE)
Oman
Qatar
Bahrain
Kuwait

Abbas