Pakistan imposes fixed excise duty on air tickets for Gulf-bound workers

Pakistan’s federal government has implemented a set federal excise tax of Rs 5,000 on airfare for individuals traveling to Gulf countries with labour visas.

This action is intended to simplify tax collection and increase earnings from emigration of workers.

The FBR has released a notification detailing the specifics of the new policy. As per the alert, Pakistanis with labor visas traveling to Gulf Cooperation Council (GCC) countries will be charged a set tax of Rs 5,000 under clause (b) of serial number 3 in the initial schedule of the Federal Excise Act, 2005.

In order to guarantee correct execution, the labour visa needs to be clearly documented on the worker’s passport and verified by the Protector of Emigrants, who is a part of the Bureau of Emigration and Overseas Employment. This provision aims to verify the employee’s position and qualification for the tax.

The imposition of this tax by the FBR showcases the government’s attempt to control and capitalize on the large influx of Pakistani workers seeking employment in the Gulf region.

A set excise fee will be charged for each ticket on international flights from Pakistan to GCC countries, specifically targeting individuals traveling on labour visas.