Tag: federal excise duty

  • PIA and other airlines increase federal excise duty on international flights

    PIA and other airlines increase federal excise duty on international flights

    Pakistan International Airlines (PIA) and other airlines operating in Pakistan have announced a significant increase in the federal excise duty (FED) on international flight tickets, following the federal government’s decision in the 2024-25 budget.

    According to the latest notification, the FED on economy and economy plus tickets has surged by 150 per cent. Previously, passengers paid Rs5,000 in FED for economy class tickets, but this has now increased to Rs12,500.

    For premium travellers, the increase is even more substantial. Passengers travelling to the USA in Club Class, who previously paid Rs250,000 in FED, will now be charged Rs350,000. Similarly, the duty for flights to destinations in Africa and the Middle East has risen from Rs75,000 to Rs105,000.

    Travellers to European cities will see their FED increase from Rs150,000 to Rs210,000. The duty on tickets for flights to Australia, New Zealand, and countries in the Far East has also risen by 40 per cent, now standing at Rs210,000.

  • FBR faces Rs75 billion shortfall in annual tax collection target

    FBR faces Rs75 billion shortfall in annual tax collection target

    The Federal Board of Revenue (FBR) is currently confronted with a shortfall of Rs75 billion in attaining the revised annual tax collection target of Rs7,200 billion for the fiscal year.

    Despite collecting Rs7,125 billion, which falls short of the revised target, the FBR faces a net revenue shortfall of Rs75 billion for the fiscal year 2022-2023.

    Originally, the FBR’s annual tax collection target was established at Rs7,640 billion for the outgoing fiscal year, subsequent to the unveiling of the mini-budget in February 2023.

    To generate additional revenue, the government implemented various measures, including an increase in the Goods and Services Tax (GST) rate from 17 per cent to 18 per cent, the application of a higher GST rate of 25 per cent on luxury goods, and a 154 per cent rise in the Federal Excise Duty (FED) on cigarettes.

    However, over the past four months, the FBR failed to generate the anticipated additional revenue, leading to a downward revision of the revenue collection target from Rs7,640 billion to Rs7,200 billion by the end of June 2023.

    Notably, Minister for Finance and Revenues, Ishaq Dar, took to Twitter to highlight the achievement of the highest-ever tax collection for the outgoing fiscal year.

    He stated, FBR has collected Rs7,000 billion in taxes for the first time in the country’s history as of June 26, 2023, and expressed optimism that the revenue collection would further increase by June 30, 2023.

    It is expected that the FBR will issue a formal statement regarding the revenue collection in due course.

  • Suzuki Cultus will now be sold for Rs4.36 million following latest price increase

    Suzuki Cultus will now be sold for Rs4.36 million following latest price increase

    On Wednesday, Pak Suzuki Motor Company (PSMC) made an announcement that has stirred up the automobile industry – a decision to increase the prices of their diverse range of car models by a substantial amount, up to Rs235,000. The automaker released a notification detailing the revised retail sales prices which will take effect from April 6th.

    As the premier assembler, manufacturer, and marketer of Suzuki cars, pickups, vans, 4x4s, motorcycles, and their spare parts in the local market, PSMC’s pricing strategy has a significant impact on the consumer market. This decision will undoubtedly spark discussions and debates, as car enthusiasts and industry experts alike try to make sense of its implications.

    The latest notification from the automobile giant has set tongues wagging as it brings about changes that may impact the pricing of their products. As per the announcement, the revised retail prices of their vehicles are inclusive of federal excise duty and sales tax, but advance income tax is not included.

    Here are the latest prices of all Suzuki cars effective April 6, 2023:

    Model Old prices New prices Increase 
    Alto VX 2,144,000 2,251,000 +107,000
    Alto VXR  2,487,000 2,612,000 +125,000
    Alto VXR AGS  2,665,000 2,799,000 +134,000
    Alto AGS 2,795,000 2,935,000 +140,000
    Wagon R VXR  3,062,000 3,214,000 +152,000
    Wagon R VXL  3,248,000 3,412,000 +152,000
    Wagon R AGS  3,563,000 3,741,000 +178,000
    Cultus VXR  3,540,000 3,718,000 +178,000
    Cultus VXL  3,889,000 4,084,000 +195,000
    Cultus AGS  4,157,000 4,366,000 +209,000
    Swift GL MT 4,052,000 4,256,000 +204,000
    Swift GL CVT 4,355,000 4,574,000 +219,000
    Swift GLX CVT 4,725,000 4,960,000 +235,000
    Ravi  1,768,000 1,856,000 +88,000
    Ravi w/o Deck  1,848,000 1,940,000 + 92,000
    Bolan Van  1,848,000 1,940,000 +92,000
    Bolan Cargo 1,852,000 1,944,000 +92,000

    It’s worth noting that the prices are subject to change without prior notice, which might cause some concern among potential buyers. Additionally, the company made it clear that any government taxes and levies applicable at the time of delivery will be the responsibility of the customers.

    With this new development, the automobile industry is bracing for a potentially significant shift in pricing, and it remains to be seen how it will affect the purchasing behavior of consumers.