Federal Board of Revenue (FBR) Sunday said that Federal Excise Duty (FED) has been increased from Rs10,000 to Rs50,000 and only be charged from the July 1st. The apex body for tax collection clarified the implementation of Federal Excise Duty (FED) for enhancing the rate on International Air Tickets.
FBR has issued notification to all airlines in this regard. In a press statement issued, FBR said FED is chargeable on the club, business, and first-class international air tickets under Section 3 of the Federal Excise Act, 2005. Furthermore, sub-rule (8) of rule 41A stipulates that FED is chargeable at the time of issuance of air tickets.
Thus, the enhanced rate of FED on air tickets under the new finance bill 2022 will be chargeable only on international tickets (Club, Business &
First class) issued on and after the a1st of July, this year. Earlier, Prime Minister Shehbaz Sharif has taken strict notice of illegal collection of Federal Excise Duty worth Rs. 50,000 from passengers at airports. Expressing strong displeasure at collection of Federal Excise Duty, he directed that the illegal order to collect federal excise duty at the airports should be immediately revoked and practice of causing trouble to passengers should be discontinued immediately.—NNI