Tag: excise duty

  • Pakistan raises plane ticket prices for foreign trips

    Pakistan raises plane ticket prices for foreign trips

    Today, the National Assembly of Pakistan has approved the Finance Bill 2024-25, introducing significant changes to taxation on foreign travel.

    Effective July 1, 2024, travelers will encounter increased excise duties when purchasing international flight tickets.

    Under the new regulations, economy and economy plus class tickets will now incur an excise duty of Rs12,500. Business and club class tickets face higher taxation rates, particularly for destinations such as the United States and Canada, where travelers will pay Rs350,000 in excise duty.

    For European destinations, this duty rises to Rs210,000, marking an increase of Rs60,000. Similarly, flights to New Zealand, Australia, China, Malaysia, and Indonesia will also see a standard excise duty of Rs210,000 on business and club class tickets.

    Furthermore, flights to the Middle East and Africa, including popular routes like Dubai and Saudi Arabia, will experience a significant increase in excise duty, climbing from Rs30,000 to Rs105,000 for business and club class tickets.

    These taxes are part of the government’s efforts to boost revenue under the new fiscal year’s budget, which has been set at Rs18,870 billion.

    Minister for Finance and Revenue Muhammad Aurangzeb presented the Finance Bill, 2024 in the National Assembly, which was subsequently passed after thorough deliberation and voting. Amendments proposed by opposition members were not adopted, ensuring the bill’s passage in its original form.

    Travelers are advised to factor in these additional costs when planning their international trips starting July 1, 2024, as the excise duties will be levied at the time of ticket purchase.

  • Govt increases excise duty on registration of cars over 2000cc

    Govt increases excise duty on registration of cars over 2000cc

    The federal government has implemented a considerable increase in excise duty on vehicle registration for vehicles with engine capacities exceeding 2000cc in the Finance Bill for the fiscal year 2023-2024.

    Under the new regulations, a fixed tax rate of six per cent has been imposed on vehicles ranging from 2001cc to 2500cc. Individuals who file their taxes will be subject to a tax payment of Rs0.25 million for vehicles falling within this range.

    For vehicles with engine capacities between 2501cc and 3000cc, the government has introduced an eight per cent fixed tax rate. Previously, filers were required to pay Rs0.2 million, while non-filers were subjected to a higher tax amount of Rs 0.4 million. Furthermore, a substantial ten per cent fixed tax has been imposed on the registration of vehicles with a capacity of 3000cc.

    The National Assembly has already approved the Finance Bill for the upcoming fiscal year, incorporating vital budgetary proposals. Finance Minister Ishaq Dar presented the bill to the House, outlining a total outlay of Rs14,480 billion.

    The passage of the federal budget in the House was a crucial step taken to address the concerns of the International Monetary Fund (IMF) and secure the revival of a suspended loan program. In light of these developments, revisions were made to the tax collection target, raising it from Rs9,200 billion to Rs9,415 billion.

    To accommodate increased pension payments, an allocation of Rs801 billion has been designated, reflecting a significant rise from the previously allocated amount of Rs761 billion. These measures demonstrate the government’s commitment to addressing pressing fiscal matters and ensuring financial stability.