IATA calls on Pakistan to reverse taxes on air tickets
The International Air Transport Association (IATA) has called on the Pakistani government to reverse a recent increase in taxes on air tickets. In the budget for 2024-25, the federal government raised the Federal Excise Duty (FED) on economy and economy plus tickets by 150 percent, according to a notification.
In a letter addressed to Pakistan's finance ministry, IATA expressed its demand for an immediate rollback of the 150 percent tax imposition on international air tickets. The organization argued that such a tax hike, implemented without consulting stakeholders, violates international civil aviation regulations.
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IATA highlighted that the increased taxes adversely impact airlines and travel agents, affecting their business operations. The government of Pakistan was urged to reconsider and rescind the decision to impose significantly higher taxes on air tickets.
Earlier, on July 6, the Travel Agents Association of Pakistan (TAAP) had also criticized the tax hike, declaring it illegal and warning of severe consequences for the industry. Former chairman Nadeem Sharif emphasized the potentially destructive impact on the industry during a press conference at TAAP's office.
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Muhammad Hanif Ranch, Chairman of the APJC, further criticized the government's actions, accusing them of violating established laws and asserting that the tax increases are arbitrary and harmful to the travel and tourism sector.
Source: Profit Pakistan