By WEB DESK: The National Assembly of Pakistan on Friday approved the Finance Bill 2024-25, ushering in significant changes to taxation affecting foreign travel starting July 1, 2024.
Under the new legislation, travelers purchasing international flight tickets will face increased excise duties. Economy and economy plus class tickets will now incur an excise duty of Rs12,500. For business and club class tickets to destinations like the United States and Canada, travelers will bear a higher excise duty of Rs350,000. Similarly, flights to European destinations will see an increase to Rs210,000, up by Rs60,000 from previous rates. Destinations including New Zealand, Australia, China, Malaysia, and Indonesia will also be subject to a standard excise duty of Rs210,000 for business and club class tickets.
Flights to the Middle East and Africa, including popular routes such as Dubai and Saudi Arabia, will experience a significant rise in excise duty, increasing from Rs30,000 to Rs105,000 for business and club class tickets.
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These flights tax adjustments are part of the government’s strategy to enhance revenue under the new fiscal year’s budget, which has been set at Rs18,870 billion.
Minister for Finance and Revenue Muhammad Aurangzeb presented the Finance Bill in the National Assembly, which was subsequently passed after thorough deliberation and voting. Amendments proposed by opposition members were not adopted, ensuring the bill’s passage in its original form.
Travelers planning international trips from July 1, 2024, are advised to consider the latest flights tax, as excise duties will be applied at the time of ticket purchase.
