Pakistan mulls imposition of excise duty on purchase of air tickets

ISLAMABAD – The federal government is mulling over proposal to impsoe excise duty on airline tickets for business class, it has emerged.

Reports in the local media suggest that the Pakistani government is trying to shore up its resources and for the same purpose it is brainstorming imposition of excise tax for international travel through business class.

"17 percent excise duty would be imposed on all international incoming and outgoing passengers travelling through business class," the Express News reported citing its sources.

It has also been revealed that club, business and first class would have to pay the duty and the government would be collecting Rs 50,000 in lieu of federal excise duty from purchase of all international air tickets by consumers.

The proposal to tax travelers is still in the works and a final decision in this regard would be made as soon as government finalises the deal with International Monetary Fund (IMF).