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New Budget Makes Air Tickets More Expensive

The federal government has raised the excise duty on business and club class air tickets, up to Rs. 350,000, in the budget for 2023-24. This change affects all ticket categories for international destinations.

Travelers heading to the Middle East and Africa, including Dubai and Saudi Arabia, will now pay Rs. 105,000 in excise duty for business and club class tickets, up by Rs. 30,000 from last year.

For trips to the United States and Canada, the duty is now Rs. 100,000 per ticket. For travel to North America, Latin America, and Canada, the duty has jumped from Rs. 250,000 to Rs. 350,000 per ticket.

Read More: Federal Budget Proposes Ban on Foreign Travel for Non-Filers

The duty on business and club class air tickets to Europe has increased by Rs. 60,000 to Rs. 210,000. The same rate applies to tickets for travel to New Zealand and Australia.

For trips to China, Malaysia, and Indonesia, the excise duty on business and club class tickets is now Rs. 210,000.

These increases are part of the government’s plan to raise more revenue through higher taxes on international air travel, making it more expensive for those who prefer business and club class flights.

It should be noted that the National Assembly on Friday approved the tax-heavy FY25 budget, ahead of talks on a new International Monetary Fund (IMF) bailout.

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