According to reports cited by the news agency, the federal government is set to impose Federal Excise Duty (FED) on business class tickets on international flights.
Imposition of 17% FED
Sources claim that 17 percent FED will be charged on travellers with business class tickets travelling both incoming and outgoing.
They have been told of this choice by the federal government team that is negotiating with the International Monetary Fund (IMF).
According to additional sources, the FED for international flight tickets will increase by Rs 50,000. The final government directive will come before the official decision is made.
The incumbent coalition administration previously increased a 10 percent direct tax in the form of a “super tax,” which resulted in higher flight prices for travellers going abroad.
In order to solve the country’s economic problems, Prime Minister Shehbaz Sharif levied a super-tax of 10% on the nation’s major manufacturing and industries.
The steel, cement, sugar, oil and gas, fertilisers, energy and terminal, and textile industries will all be subject to a 10% tax, the prime minister said when making the difficult decisions due to the current economic circumstances.
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