Pakistan slaps Rs5,000 excise duty on air tickets for Gulf-bound labours

Pakistan government has imposed Rs5,000 fixed federal excise duty on air tickets for passengers traveling to Gulf countries on labour visas.

This move aims to streamline taxation and generate additional revenue from outbound labour migration.

According to a notification issued by the Federal Board of Revenue (FBR), under clause (b) of serial number 3 of the first schedule of the Federal Excise Act, 2005, a fixed tax of Rs 5,000 will be levied on air tickets for Pakistanis traveling to Gulf Cooperation Council (GCC) countries on labour visas.

To ensure proper implementation, the labour visa must be visibly printed on the worker’s passport and authenticated by the Protector of Emigrants, part of the Bureau of Emigration and Overseas Employment. This stipulation is intended to confirm the worker’s status and eligibility for the tax.

It is to be noted that the federal government jacked up the FED on the international flights in the budget 2024-25. According to the notification, the FED on economy and economy plus tickets has risen by 150 per cent.

On July 6, the Travel Agents Association of Pakistan (TAAP) declared the recent increase in taxes on air tickets as illegal, stating that the sharp rise has plunged the industry into a severe crisis.