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Government Sets Fixed Excise Duty on Air Tickets for Workers Traveling to Gulf Countries

The federal government of Pakistan has introduced a fixed excise duty of Rs 5,000 on air tickets for passengers traveling to Gulf countries on labor visas. This measure aims to simplify the taxation process and generate additional revenue from labor migration.

The Federal Board of Revenue (FBR) issued a notification detailing the new policy. According to this notification, 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 imposed on air tickets for Pakistanis flying to Gulf Cooperation Council (GCC) countries on labor visas.

To ensure effective implementation of this tax, it is required that the labor visa be clearly printed on the worker’s passport and authenticated by the Protector of Emigrants, a department within the Bureau of Emigration and Overseas Employment. This requirement is designed to verify the worker’s status and eligibility for the tax.

The FBR’s decision to levy this excise duty underscores the government’s strategy to regulate and capitalize on the large number of Pakistani workers traveling to the Gulf region for employment. The new tax will be applied to each international flight ticket from Pakistan to GCC countries, specifically for those holding labor visas.

By introducing this fixed excise duty, the government aims to address the significant outflow of labor and ensure a steady stream of revenue from outbound migration. The policy reflects ongoing efforts to streamline and benefit from Pakistan’s labor export sector, providing a structured approach to managing the taxation of labor-related travel.

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