Pakistan Adds Fixed Tax on GCC Air Tickets for Labor Migration
This move aims to streamline taxation and generate additional revenue from outbound labor migration.
According to a notification issued by the Federal Board of Revenue (FBR), under clause (b) of serial number 3 of the first schedule of the Federal Excise Act, 2005, a fixed tax of Rs 5,000 will be levied on air tickets for Pakistanis traveling to Gulf Cooperation Council (GCC) countries on labor visas.
To ensure proper implementation, the labor visa must be visibly printed on the worker’s passport and authenticated by the Protector of Emigrants, part of the Bureau of Emigration and Overseas Employment. This stipulation is intended to confirm the worker’s status and eligibility for the tax.
IATA asks Pakistan to revoke recent tax hike on air tickets
It is to be noted that the federal government jacked up the FED on international flights in the budget 2024-25. According to the notification, the FED on economy and economy plus tickets has risen by 150 percent.
On July 6, the Travel Agents Association of Pakistan (TAAP) declared the recent increase in taxes on air tickets as illegal, stating that the sharp rise has plunged the industry into a severe crisis.
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