PIA and other airlines increase federal excise duty on international flights

Pakistan International Airlines (PIA) and other airlines operating in Pakistan have announced a significant increase in the federal excise duty (FED) on international flight tickets, following the federal government’s decision in the 2024-25 budget.

According to the latest notification, the FED on economy and economy plus tickets has surged by 150 per cent. Previously, passengers paid Rs5,000 in FED for economy class tickets, but this has now increased to Rs12,500.

For premium travellers, the increase is even more substantial. Passengers travelling to the USA in Club Class, who previously paid Rs250,000 in FED, will now be charged Rs350,000. Similarly, the duty for flights to destinations in Africa and the Middle East has risen from Rs75,000 to Rs105,000.

Travellers to European cities will see their FED increase from Rs150,000 to Rs210,000. The duty on tickets for flights to Australia, New Zealand, and countries in the Far East has also risen by 40 per cent, now standing at Rs210,000.