The International Air Transport Association (IATA) has formally requested the Federal Board of Revenue (FBR) to reconsider the recently introduced federal excise duty (FED) on air tickets for passengers traveling to Gulf countries under labor visas. The association highlighted the significant challenges airlines face in differentiating passengers based on specific visa types, especially during the check-in process.
In its letter to the FBR chairman, IATA emphasized that airlines struggle to verify passengers’ visas, making it difficult to apply varying duties accurately. The association suggested reducing the FED for passengers traveling in economy class to all Gulf and African countries or introducing a discount on FED for all economy class flights to Gulf countries. This move would help streamline the process and reduce the burden on airlines.
IATA also raised concerns about the rapidly changing fares, which add to the complexity. The recent fare changes, implemented on August 10, have further complicated matters for airlines. The association urged the government to provide at least six months’ notice for any changes in ticket taxes, allowing airlines sufficient time to adapt.
The federal government introduced a fixed FED of Rs5,000 on air tickets for passengers traveling to Gulf countries under labor visas on August 7. The FBR clarified that the labor visa must be printed on the passengers’ passports and verified by the Protector of Emigrants.
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