Travel to UAE and GCC: Pakistan reduces duty on air tickets for blue-collar workers
The Pakistani government has lowered the federal excise duty on airfares for blue-collar workers traveling to the UAE and other Gulf Cooperation Council (GCC) countries.
According to a notification from the Federal Board of Revenue, a fixed tax of Rs5,000 (Dh66) per ticket will now be applied to passengers with labor visas, as verified by the Bureau of Emigration and Overseas Employment, departing from Pakistan to GCC countries. This reduction from the previous tax of Rs12,500 (Dh165) was implemented on August 10, 2024.
Flydubai, a Dubai-based carrier, announced that this reduced tax applies to passengers with verified labor visas traveling to GCC nations. The airline emphasized compliance with local regulations and guidelines.
Currently, five Pakistani airlines and four UAE carriers operate flights between the two countries. The UAE-Pakistan air corridor is one of the busiest, driven by a large South Asian expatriate community. Due to high demand and limited seat availability, flights between Pakistan and the UAE tend to be more expensive compared to similar routes from neighboring countries.
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The new fixed excise duty comes amid an increase in Business Class ticket taxes, which rose by Rs30,000 to Rs105,000 for flights to the UAE, GCC, and other Middle Eastern countries as of July 1, 2024.
In recent years, high inflation, a lack of job opportunities, and political instability have prompted a significant outflow of South Asians seeking employment abroad. GCC countries, including the UAE, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait, host a large number of Pakistani expatriates.
In the 2023-24 period, GCC countries were the top destinations for Pakistani workers, with 862,625 individuals migrating for work. Saudi Arabia was the leading destination, attracting 426,951 Pakistanis. The UAE hosted approximately 1.7 million South Asian nationals, including 230,000 Pakistanis.
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Oman employed 60,046 Pakistani workers, Qatar 55,112, and Bahrain and Malaysia employed 13,345 and 20,905 workers, respectively.
As of April 2024, over 13.53 million Pakistanis have migrated abroad for work, with 96 percent of registered overseas workers residing in GCC countries. These expatriates play a crucial role in Pakistan’s economy through remittances, which are a major source of foreign exchange for the country.
Source: Khaleej Times