Govt to impose FED on business tickets of international airlines

ISLAMABAD: The federal government is likely to impose Federal Excise Duty (FED) on the business class tickets of international airlines, ARY News reported citing sources. 

According to sources, 17 percent FED will apply to the inbound and outbound business class ticket passengers.

The federal government team who is negotiating with International Monetary Fund (IMF) has informed them about this decision.

Sources added that Rs 50,000 will increase in international flight tickets in the form of FED. The official decision will be made after the government’s final direction.

Read more: AIRLINE FARES SURGE AFTER GOVT IMPOSES SUPER TAX

Earlier, the airline fares jacked up for passengers travelling abroad following the imposition of a 10pc direct tax in the form of a ‘super tax’ by the incumbent coalition government.

Prime Minister Shehbaz Sharif imposed a super-tax of 10 percent on large-scale manufacturers and industries in the country in order to address the economic woes of the country.

The prime minister, while announcing the tough decisions in the wake of the ongoing economic situation, said that industries related to steel, cement, sugar, oil and gas, fertilizers, energy and terminal, and textile will face a 10 percent tax.