The International Air Transport Association (IATA) has asked the Pakistani government to reduce the tax on air tickets. In the 2024-25 budget, the federal government increased the Federal Excise Duty (FED) on international flights. This hike has raised the FED on economy and economy plus tickets by 150%.
In a letter to Pakistan’s finance ministry, IATA demanded an immediate reversal of the 150% tax increase on international air tickets. The association argued that increasing the tax without consulting stakeholders violates international civil aviation rules.
IATA stated that the tax hike negatively impacts both airlines and travel agents. They urged the Pakistani government to reconsider and remove the excessive tax on air tickets.
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On July 6, the Travel Agents Association of Pakistan (TAAP) also criticized the tax increase, calling it illegal. During a press conference, former chairman Nadeem Sharif warned that the tax hike could severely damage the industry.
APJC Chairman Muhammad Hanif Ranch condemned the government’s actions, claiming they violate existing laws and harm the travel and tourism sector.
