IATA asks Pakistan to revoke recent tax hike on air tickets

The FED on economy and economy plus tickets has risen by 150 per cent

KARACHI:  International Air Transport Association (IATA) has demanded of Pakistan government to lower tax on air tickets.

The federal government jacked up the FED on the international flights in the budget 2024-25. According to the notification, the FED on economy and economy plus tickets has risen by 150 per cent.

In a letter to Pakistan’s finance ministry, the IATA has demanded to immediately roll back the imposition of 150pc tax on international air tickets.

The body stated that increasing tax on the tickets without taking stakeholders into confidence is against the rules and regulations of international civil aviation.

Increase in tax, affects the business of airlines and the agents, the IATA further said in its letter. The government of Pakistan has been urged to revoke the decision of massive tax on the air tickets.

On July 6, the Travel Agents Association of Pakistan (TAAP) declared the recent increase in taxes on air tickets as illegal, stating that the sharp rise has plunged the industry into a severe crisis.

During a press conference held at their office, former chairman and member of the executive committee Nadeem Sharif emphasized that the industry could face destruction due to these measures.

APJC Chairman Muhammad Hanif Ranch criticized the government’s actions over the past five days, asserting that they have violated existing laws. He labeled the tax increases as arbitrary and detrimental to the travel and tourism sector.

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