Govt Increases Excise Duty On Airline Tickets Up to Rs. 350,000 in Finance Bill

July 1, 2024Zayn0

In the federal budget for 2023–2024, the federal government increased the excise charge on business and club class airline tickets to a maximum of Rs. 350,000.

Revisions to the Finance Bill

The Finance Bill’s most recent and final revisions drastically alter the excise taxes for all ticket classifications traveling to different foreign countries.

Duty on Economy and Economy Plus Tickets

Duty on economy and economy plus tickets would be Rs. 12,500 if they are issued on or after July 1, 2024.

Duty on Tickets to the Middle East and Africa

Travelers to the Middle East and Africa, which includes places like Dubai and Saudi Arabia, would have to pay duty on their business/club class airline tickets of Rs. 105,000, an increase of Rs. 30,000 from the previous fiscal year.

Duty on Tickets to North America, Latin America, and Canada

The excise duty for business and club class tickets to the US and Canada is now Rs. 100,000 per ticket. The duty on business/club class tickets has been raised from Rs. 250,000 to Rs. 350,000 for travelers heading to North America, Latin America, and Canada. Duty on Tickets to Europe, Australia, and New Zealand

Duty on Tickets to China, Malaysia, and Indonesia

Business and club class tickets to locations in Europe now have a charge of Rs. 210,000, up from Rs. 60,000. Similarly, the same category of tickets for travel to Australia and New Zealand now have a duty of Rs. 210,000.The excise fee on business and club class tickets has been raised to Rs. 210,000 for travel to China, Malaysia, and Indonesia.

Effects on Internal Travel

The federal government of Pakistan has implemented new regulations for internal air travel in addition to the modifications to travel duties abroad. On domestic economy class tickets, the excise duty has been raised from Rs. 500 to Rs. 1,000 per ticket. It is anticipated that this will significantly affect how affordable air travel is for the typical Pakistani person.

In Summary

Included in the federal budget for 2023–2024, the changes to the excise levies on airline tickets mark a substantial departure from the government’s previous methods of collecting money and directing travel trends.

Zayn

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