Karachi, Pakistan – Travelers between Pakistan and the UAE are facing a significant increase in airfares following the imposition of new taxes by the Pakistani government. The move, aimed at bolstering government revenue, has led to a surge in ticket prices, impacting both residents and visitors.
Table of Contents
The Federal Board of Revenue (FBR) recently announced a substantial hike in the federal excise duty (FED) on international air tickets. The new tax regime has resulted in a 150% increase in FED for economy and economy plus tickets, translating to a significant rise in overall airfares.
Passengers holding labor visas bound for the UAE and other Gulf Cooperation Council (GCC) countries are also subject to a fixed FED of Rs5,000 per ticket. This additional burden has further exacerbated the cost of travel for Pakistani workers seeking employment in the region.
Major airlines operating between Pakistan and the UAE, including Pakistan International Airlines (PIA), Emirates, and others, have implemented the new tax, leading to a noticeable increase in ticket prices. This development has caused widespread discontent among travelers, particularly those with limited budgets, such as students, overseas workers, and families visiting relatives.
The higher airfares are expected to impact the travel industry, with potential implications for tourism and business travel. While the government aims to increase its revenue through these taxes, the move could also discourage travel and affect economic activity.
As the situation unfolds, passengers are advised to carefully plan their travel and consider alternative options to minimize costs. It remains to be seen how the aviation industry will adapt to these changes and whether there will be any relief for travelers in the near future.
Know More About New Taxes on Airline Tickets:
What are the new taxes on airline tickets?
- What are the new taxes on airline tickets?
The Pakistani government has increased the Federal Excise Duty (FED) on international air tickets. - When did the new taxes start?
The new taxes came into effect on July 1, 2024. - Who imposed the new taxes?
The Federal Board of Revenue (FBR) in Pakistan.
How much are the new taxes?
- How much has the FED increased?
The FED on economy and economy plus tickets increased by 150%. - What is the new FED for economy tickets?
Rs. 12,500. - What was the previous FED for economy tickets?
Rs. 5,000. - Are there different tax rates for different destinations?
Yes, there are different tax rates based on the destination.
Who is affected by the new taxes?
- Who is affected by the new taxes?
All passengers traveling on international flights from Pakistan. - Are there exemptions for any passengers?
No, the new taxes apply to all passengers. - Do the new taxes affect domestic flights?
No, the new taxes only apply to international flights.
Impact of the new taxes
- How have the new taxes affected airfares?
Airfares have increased significantly due to the new taxes. - Which airlines have increased their prices?
All major airlines operating from Pakistan. - How much have airfares increased?
The increase varies depending on the airline and destination. - Are there any protests against the new taxes?
Yes, there has been a public outcry against the increase in airfares. - What is the impact on travel and tourism?
The increase in airfares could negatively impact travel and tourism.
Government’s perspective
- Why did the government increase the taxes?
To increase government revenue. - Will the government reduce the taxes in the future?
It’s uncertain if the government will reduce the taxes. - How will the government use the additional revenue?
The government hasn’t specified how the revenue will be used.
Traveler’s perspective
- How can travelers cope with the increased airfares?
Travelers can compare prices, book in advance, or consider alternative travel options. - What are the options for those who cannot afford the increased fares?
Travelers may need to postpone their travel plans or explore cheaper alternatives.