Today, the National Assembly of Pakistan has approved the Finance Bill 2024-25, introducing significant changes to taxation on foreign travel.
Effective July 1, 2024, travelers will encounter increased excise duties when purchasing international flight tickets.
Under the new regulations, economy and economy plus class tickets will now incur an excise duty of Rs12,500. Business and club class tickets face higher taxation rates, particularly for destinations such as the United States and Canada, where travelers will pay Rs350,000 in excise duty.
For European destinations, this duty rises to Rs210,000, marking an increase of Rs60,000. Similarly, flights to New Zealand, Australia, China, Malaysia, and Indonesia will also see a standard excise duty of Rs210,000 on business and club class tickets.
Furthermore, flights to the Middle East and Africa, including popular routes like Dubai and Saudi Arabia, will experience a significant increase in excise duty, climbing from Rs30,000 to Rs105,000 for business and club class tickets.
These taxes are part of the government’s efforts to boost revenue under the new fiscal year’s budget, which has been set at Rs18,870 billion.
Minister for Finance and Revenue Muhammad Aurangzeb presented the Finance Bill, 2024 in the National Assembly, which was subsequently passed after thorough deliberation and voting. Amendments proposed by opposition members were not adopted, ensuring the bill’s passage in its original form.
Travelers are advised to factor in these additional costs when planning their international trips starting July 1, 2024, as the excise duties will be levied at the time of ticket purchase.
