ISLAMABAD – The global trade association of the world’s airlines has asked the authorities in Pakistan to review the recently announced tax on those traveling to the Gulf.
In this regard, the International Air Transport Association (IATA) has raised the issue with the Federal Board of Revenue (FBR) about challenges airlines are facing due to a new tax on air tickets for workers traveling to Gulf countries.
IATA pointed out that it’s hard for airlines to check if passengers have labor visas when they buy tickets, especially since visas are usually only checked at the airport during check-in.
In its letter, the association has asked the government to lower the tax for economy class passengers traveling to Gulf and African countries. In case, lowering the tax is impossible, the body has suggested offering a discount for economy-class flights to Gulf countries to make calculations easier for airlines.
IATA also mentioned that frequent changes in ticket prices add to the difficulty, especially since the latest price changes took place on August 10, just after another update three days earlier, Samaa News reported. The association is asking the government to give airlines at least six months to adjust to any new taxes.
It is to be highlighted that on August 7, the government introduced a fixed tax of Rs5,000 on air tickets for Pakistani workers traveling to Gulf countries under labor visas. This tax must be printed on the passengers’ passports and verified by the Protector of Emigrants, according to a notice from the FBR.
