Home » Finance Bill Increases Excise Duty on Airline Tickets Up To Rs 350,000

Finance Bill Increases Excise Duty on Airline Tickets Up To Rs 350,000

by Haroon Amin
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The federal government raised the excise tax on business and club class airline tickets in the budget for 2023-2024.

The Finance Bill’s most recent and final revisions drastically alter the excise taxes for all ticket classifications travelling to different foreign countries.

Duty on economy and economy plus tickets would be Rs. 12,500 if they are issued on or after July 1, 2024.

Travellers to the Middle East and Africa, which includes places like Dubai and Saudi Arabia, would have to pay duty on their business/club class airline tickets of Rs. 105,000, an increase of Rs. 30,000 from the previous fiscal year.

The excise duty for business and club class tickets to the US and Canada is now Rs. 100,000 per ticket. The duty on business/club class tickets has been raised from Rs. 250,000 to Rs. 350,000 for travellers heading to North America, Latin America, and Canada.

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The business and club class excise duty for tickets to China, Malaysia, and Indonesia has been increased to Rs. 210,000.

The impact on travellers will vary according to their trip plans and financial situation.

  • Cost Increase:

Travelers flying in business or club class to the specified destinations will face higher ticket prices due to the increased excise duties. For example, those flying to the USA, Canada, or Latin America will pay an additional Rs. 100,000, while Middle East and African destinations will see an increase of Rs. 30,000. European travelers will pay an extra Rs. 60,000, and New Zealand and Australia-bound passengers will also be affected.

  • Considering the Budget:

These increased expenses must be taken into account by travellers while making travel plans. It might have an effect on their entire trip budget, particularly if they often take flights in first class.

  • Business Vacationers:

It may be necessary for business travellers to modify their spending plans or look into less expensive options if they depend on business or club class tickets for trips related to their jobs.

  • Tourism and Leisure Travel:

To offset the higher costs, leisure travellers could reevaluate their itinerary or look at purchasing a ticket in economy.

  • Airlines and Tourism Industry:

These tariff increases may cause changes in demand and revenue for airlines and the travel industry. To stay competitive, some airlines may need to make changes to their pricing strategy.

Keep in mind that these modifications are a part of the budget for the fiscal year 2024-2025, and travellers should be aware of any updates.

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