Travel agents came into the fray against increasing tax on air travel.
Travel agents demanded an immediate rollback of the hike in air travel tax.
Former Chairman Travel Agents Pakistan Nadeem Sharif along with other officials said in a joint press conference that the tax imposed by the government is a violation of IATA and ACAO laws.
He said that according to the laws, consultation is mandatory 4 months before imposing tax, but we were given only one day’s notice.
Travel agents said that the travel industry generates an annual business of $2 billion while contributing $250 million annually to Pakistan’s tax net.
He said that if the ticket is booked from Pakistan, the tax will be charged while from abroad it will be booked without tax.
It should be remembered that all the airlines including PIA, Saudi Air, Emirates imposed new federal excise duty on all flights departing from Pakistan.
Airlines have started applying a new tax for international travel from Pakistan, under which FED has been increased by 150% on Economy and Economy Plus tickets.
The FED on economy class ticket has been increased from Rs 5 thousand to Rs 12 thousand 500.
The FED on club class flights from Pakistan and America has been increased from Rs 250,000 to Rs 350,000, while the FED on flights to the Middle East and Africa has been increased from Rs 75,000 to Rs 155,000.
The FED on flights from Pakistan to Europe has been increased from Rs 1.5 lakh to Rs 2 lakh 10 thousand, while the FED has been increased by 40% to Rs 2 lakh 10 thousand on flights to Australia, New Zealand and Far East Asia. was given.
All airlines have started implementing the new taxes on ticket bookings from July 1 following the increase in federal excise duty in the budget.