Govt imposes federal excise duty on air travellers

The government has imposed federal excise duty on air travellers of lawmakers under the Finance Supplementary Bill 2023, ARY News reported on Monday.

The federal government approved the legislation to impose FED on air passengers. The government adopted several decisions to increase tax collections for the revival of the IMF loan programme.

Under the Finance Supplementary Bill 2023, it was proposed to impose a fixed amount of Federal Excise Duty (FED) ranging from Rs250,000 to Rs75,000 of different tiers as per the International Air Transport Association (IATA) on airfare for first, business and club classes should be imposed.

READ: NA PASSES FINANCE SUPPLEMENTARY BILL 2023

As per the proposed legislation, the FED was hiked on business-class tickets for outgoing air travellers. The FED of Rs250,000 will be imposed on business-class tickets for South America and Rs75,000 on business and first-class tickets for the Middle East and Africa.

Rs150,000 on account of FED will be charged on business-class tickets for European countries, as well as the same amount will be imposed on business and first-class tickets for the Middle East and Asia Pacific countries.

The National Assembly passed the Finance (Supplementary) Bill 2023, proposing additional taxes and duties of Rs170 billion to meet the conditions set by the International Monetary Fund (IMF).