Govt to impose FED on international airlines business tickets

    ISLAMABAD: The federal government is planning to levy Federal Excise Duty (FED) on international airline business class tickets.

    According to sources, the inbound and outward business class ticket passengers will face a 17 percent FED.

    The federal government team negotiating with the International Monetary Fund (IMF) has been apprised of this decision. According to sources, FED will hike foreign flight fares by Rs 50,000. The official decision will be made following the final direction from the government.

    Previously, the governing coalition government imposed a 10% direct tax in the form of a super tax,’ raising airline costs for people traveling abroad. In order to solve the country’s economic challenges, Prime Minister Shehbaz Sharif announced a 10% super-tax on large-scale manufacturing and enterprises.

    While announcing the difficult measures in light of the current economic circumstances, the prime minister stated that industries such as steel, cement, sugar, oil and gas, fertilizers, energy and terminals, and textile will face a 10% tax.


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