Get ready air tickets get more expensive in Pakistan after tax hike

In the latest budget for 2024-25, air travel costs are set to rise significantly, particularly for those flying in business and club class.

Starting from July 1, the government has introduced new excise duties on air tickets to various international destinations. These changes will affect travelers heading to destinations such as the United States, Canada, and North and Latin America.

The excise duty for these routes has jumped from Rs 250,000 to Rs 350,000, marking an additional Rs 100,000 for premium flying experiences.

Europe will also see a substantial increase in air travel costs. Business class flights to European countries will now carry a Rs 210,000 duty, up from the previous Rs 150,000. This represents a Rs 60,000 increase for those planning to travel to European destinations in comfort.

Travelers to New Zealand and Australia will face a similar Rs 60,000 hike, bringing the total excise duty to Rs 210,000. Additionally, the duty on business class tickets to popular Asian destinations such as China, Malaysia, and Indonesia has also been raised to Rs 210,000.

Meanwhile, travelers to Saudi Arabia, UAE, the Middle East, and African countries will now pay an additional Rs 30,000, with the new excise duty totaling Rs 105,000. These changes reflect the government’s strategy to increase revenue through higher taxes on luxury travel options.