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Government Raises Excise Duty on Airline Tickets Up to Rs. 350,000 in Finance Bill

The federal government has raised the excise duty on business and club class air tickets up to Rs. 350,000 in the federal budget for 2023-24. The final amendments in the Finance Bill reveal substantial changes in excise duties across all ticket categories for various international destinations.

Starting from July 1, 2024, economy and economy plus air tickets will incur an excise duty of Rs. 12,500. Travelers heading to the Middle East and African countries, including Dubai and Saudi Arabia, will face a duty of Rs. 105,000 on business/club class air tickets, marking an increase of Rs. 30,000 from the previous fiscal year.

For trips to the United States and Canada, the excise duty for business/club class tickets will be Rs. 100,000. The duty for business/club class tickets to North America, Latin America, and Canada has surged from Rs. 250,000 to Rs. 350,000.

The excise duty on business and club class tickets to European destinations has risen by Rs. 60,000, reaching Rs. 210,000. Similarly, the duty for the same ticket category to New Zealand and Australia has been increased to Rs. 210,000.

For travelers heading to China, Malaysia, and Indonesia, the excise duty on business and club class tickets has also been raised to Rs. 210,000.

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