Increase in Taxes on Air Fare in Pakistan in 2023
Channel: Khalid Masood
Date: 2023-02-27

Increase in Taxes on Air Fare in Pakistan in 2023

This YouTube video discusses the recent increase in taxes on airline tickets in Pakistan. The new Federal Excise Duty (FED) was approved by the National Assembly on February 20 as part of the amended Finance (Supplementary) Bill 2023 moved by the Minister of Finance, Mohammad Ishaq Dar. The new taxes apply to customers who purchase club class, business class, and first-class tickets and are applicable to different destinations. The rate of the duty levied on passengers will depend on their respective destination. There are four different duty amounts that passengers will have to pay for different destinations. The duties are part of the Finance (Supplementary) Bill 2023 to enhance the government's tax collection and raise Rs 170 billion in tax revenue. The video also addresses the elephant in the room, which is whether the FED affects customers traveling in Economy Class. The FED in its current iteration does not apply to customers traveling on economy class fares. The video concludes by explaining the concept of Traffic Conference Areas and how they are used to streamline the procedures associated with fare construction rules, routings, and fares.

#pakistan #airfare #taxes