According to a notification issued by the Federal Board of Revenue (FBR) on Tuesday, domestic passengers will now pay Rs60 over and above 16 per cent federal excise duty calculated on the basis of total value of an air ticket. Tax rates for international air passengers have been increased by Rs100 per ticket.
The notification has been issued in pursuance of a decision of the Economic Coordination Committee (ECC) of the cabinet, said Shahid Hussain Asad, Member Inland Revenue Service of the FBR.
The government has divided international passengers into two categories. For passengers travelling to and from member countries of the South Asian Association for Regional Cooperation (Saarc), the UAE, Saudi Arabia and Africa, the FBR will collect Rs3,340 from Economy and Economy Plus passengers and Rs4,340 from Business and First-Class passengers on account of federal excise duty.
In the second category, international passengers of the Economy and Economy Plus classes travelling to or from Europe, Far East Asia, China, the US, Canada, Australia, South America and others will pay Rs4,340 while Business and First-Class passengers would be liable to pay Rs5,840 on account of federal excise duty.
Published in The Express Tribune, February 15th, 2012.
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