ISLAMABAD: Following the implementation of demands of International Monetary Fund (IMF), the government has fixed the new rates of Federal Excise Duty (FED) on air tickets of business, first class, and club class on the basis of regions/areas in line with the three-tiers of IATA.
The measure comes subsequently after National Assembly (NA) on Monday passed the Finance (Supplementary) Bill 2023, proposing additional taxes and duties of Rs170 billion to meet the conditions set by the IMF.
Under the first slab, the rate of the FED would be Rs250,000 on the said tickets of IATA Traffic Conference Area-1 (North, Central, South America and Environs).
As per the second slab, the rate of the FED would be Rs75,000 on the said tickets of IATA Traffic Conference Area-2 (Middle East and Africa). The FED would be Rs150,000 for IATA Traffic Conference Area-2 (Europe).
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Under the third slab, the rate of the FED would be Rs150,000 on the said tickets of IATA Traffic Conference Area-3 (Far East, Australia, New Zealand and Pacific Islands).
