The Pakistan government has approved new tax measures affecting foreign travel. Under the Finance Bill 2024-25 passed by the National Assembly today, travelers purchasing economy and economy plus class tickets will be subject to an excise duty of Rs12,500. For business and club class tickets, higher tax rates apply.
Travelers flying to the United States and Canada will face an excise duty of Rs350,000 on business and club class tickets, while those traveling to Europe will see an increase of Rs60,000 to Rs210,000 in excise duty.
Similarly, for destinations such as New Zealand, Australia, China, Malaysia, and Indonesia, business and club class tickets will incur a tax of Rs210,000.
Additionally, the excise duty on business and club class tickets to the Middle East and Africa, including popular destinations like Dubai and Saudi Arabia, has been raised from Rs30,000 to Rs105,000. These tax adjustments will come into effect on July 1, applicable to all international travel bookings, with travelers required to pay the tax at the time of ticket purchase.
