The Cabinet has given approval to the summary of the Revenue Division to drastically reduce the FED on international air travel by Rs20,000. PM Shabaz Shareef has approved the reduction in federal excise duty on air fares.
The FED on air tickets was increased from Rs10,000 to Rs50,000 in the 1st budget (2022-23) after approval of the cabinet and the Senate Standing Committee on Finance. The FBR has stated that the FED is chargeable on club, business and first class international air tickets under Section 3 of the Federal Excise Act, 2005.
This decision will be imposed on tickets bought after the 1st of July. The decrease in the FED on the elite class negates the claim made by Finance Minister Miftah Ismail that the budget has targeted the rich and elite class. However, this is definitely good news for all those who were planning a vacation with family or friends.
So if you are planning to escape the terrible hot weather, now is the time. With the reduction in federal excise duty, airfares have become affordable.
The FBR will issue the relevant notification in the coming days to slash the FED on international air travel.