Federal Excise Duty imposed on air travelers. The government has imposed federal excise duty on air travelers of lawmakers under the Finance Supplementary Bill 2023.
The federal government accepted the law to impose FED on air passengers. The government accepted numerous decisions to increase tax collections for the renewal of the IMF loan program.
Under the Finance Supplementary Bill 2023, planned to impose a fixed amount of Federal Excise Duty (FED) ranging from Rs250,000 to Rs75,000 of different tiers as per the International Air Transport Association (IATA) on airfare for first, business and club classes imposed.
As per the recommended legislation, the FED hiked on business-class tickets for outgoing air travelers. The FED of Rs250,000 forced on business-class tickets for South America. And Rs75,000 on business and first-class tickets for the Middle East and Africa.
Rs150,000 on account of FED charged on business-class tickets for European countries. As well as a similar amount imposed on business and first-class tickets for the Middle East and Asia Pacific countries.
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The National Assembly approved the Finance (Supplementary) Bill 2023, suggesting extra taxes and duties of Rs170 billion to meet the conditions set by the International Monetary Fund (IMF).