Starting July 1, airfare hikes have compounded issues for Umrah pilgrims and travelers to Gulf countries, Europe, the USA, Canada, and Australia.
Moreover, the federal excise duty (FED) on economy and economy plus tickets has surged from 40% to 150%, raising the tax on economy tickets from Rs5,000 to Rs12,500 for all destinations.
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The tax increases extend to business class, club class, and first-class tickets, with rates to America rising from Rs250,000 to Rs350,000. Travel to the Middle East and Africa faces a tax hike from Rs75,000 to Rs105,000, while European destinations and premium class tickets to Australia, New Zealand, Canada, Indonesia, Japan, and Korea see an increase from Rs150,000 to Rs210,000.
The new tax structure has sparked outrage in the airline industry, with travel and tour operators concerned about the FED increase from 40% to 150%. Overseas Pakistanis remitting foreign exchange are also worried and demand the government withdraw the heavy tax.
