It has come to light that the federal government is considering a proposal to impose an excise tax on business-class airline tickets.
According to local media reports, the Pakistani government is mulling the implementation of an excise tax on foreign business-class travel in an effort to increase its financial resources.
A local news agency cited, “A 17% excise duty would be imposed on all international incoming and outgoing passengers travelling through the business class.”
In addition, it has been disclosed that club, business, and first-class passengers would be required to pay the tax, and that the government will collect Rs 50,000 in lieu of federal excise tax on the purchase of all foreign airline tickets by customers.
As soon as the government finalises its agreement with the International Monetary Fund, a definitive determination about the proposal to tax passengers will be made (IMF).
