Following the implementation of demands of the International Monetary Fund (IMF), the government has imposed Federal Excise Duty (FED) on first and business-class international flights.
The measure comes subsequently after National Assembly (NA) on Monday passed the Finance (Supplementary) Bill 2023, proposing additional taxes and duties of Rs170 billion to meet the conditions set by the IMF.
Under the bill, it was proposed to impose a fixed amount of FED ranging from Rs250,000 to Rs75,000 of different tiers as per the International Air Transport Association (IATA).
Following the approval of the bill, FED for Canada and America had been set at Rs0.25 million; while for Europe it had been fixed at Rs0.15 million.
Apart from this, Rs0.075 million FED had been imposed on business and first-class tickets for the Middle East and Africa.
Earlier, airline fares for passengers traveling abroad were hiked after the government imposed a 10% direct tax in the form of a ‘super tax’.
