FED on airlines tickets increases by 150 per cent, notification issued

KARACHI: Pakistan International Airlines (PIA) and all other airlines in Pakistan have notified an increase in the federal excise duty (FED) on their tickets for international flights. 

The federal government jacked up the FED on the international flights in the budget 2024-25. According to the notification, the FED on economy and economy plus airlines tickets has risen by 150 per cent.

The passengers who were previously paying Rs5,000 in FED on economy tickets will now pay Rs12,500.

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Similarly, the amount of duty, which was previously charged from the people traveling to the USA in the Club Class, has now gone up from Rs250,000 to Rs350,000.

Likewise, the duty on tickets for flights to destinations in Africa and the Middle East has been increased from Rs75,000 to Rs105,000.

The FED on tickets for flights to cities in Europe has been increased from Rs150,000 to Rs210,000.

Similarly, the duty on tickets for flights to Australia, New Zealand and the countries in the Far East has risen by 40 per cent to reach Rs210,000 by PIA and other airlines.

This rise in FED is expected to have a substantial impact on travel budgets and could deter many from flying internationally. Airlines have been swift to adjust their ticket pricing to reflect the new duties, affecting passengers booking tickets from July 1 onwards.