ISLAMABAD – Business class travelers are set to enjoy big cuts in Federal Excise Duty after Budget 2026-27, as the government proposed lowering taxes across major global routes. The scale of the reduction sparked debate, with critics pointing out that “austerity” seems noticeably more comfortable when it comes with a first-class boarding pass.
If approved by Parliament, the revised rates would dramatically lower cost of premium travel across major global routes, a relief package, it seems, designed for elites who already enjoy extra legroom and priority boarding.
Under the proposal, the American route would see FED slashed from a rather hefty Rs350,000 to Rs50,000. Europe would drop from Rs 210,000 to Rs 40,000, while travel to the Middle East and Africa would fall from Rs 105,000 to Rs 25,000. The Far East and Australia routes would also be aligned with Europe at Rs 40,000, down from Rs 210,000. In simpler terms, the more expensive your ticket, the more generous the tax cut.
Proposed FED Cuts for Business Class
| Region | Current | Proposed |
| Americas | Rs350,000 | Rs 50,000 |
| Europe | Rs210,000 | Rs 40,000 |
| Middle East & Africa | Rs105,000 | Rs 25,000 |
| Far East & Australia | Rs210,000 | Rs 40,000 |
Officials frame the move as rationalisation of duties on international travel. Critics, however, may note the familiar pattern where “rationalisation” tends to develop a very comfortable seat cushion when it reaches the upper end of the income ladder.
To be fair, the proposal is still awaiting parliamentary approval. Until then, the only thing guaranteed to remain fully priced is the patience of economy-class passengers watching the numbers from the back of the cabin. If passed, the changes will take effect under the Finance Bill 2026–27, potentially redefining ‘relief for all’ as one business-class ticket at a time.
Critics strongly criticized Budget 2026–27, claiming it offers no meaningful relief to the masses and favors elite. Excessive borrowing and rising government spending instead of economic relief or expenditure control raise concerns.
Such moves also add heat to the debate as inflation-weary Pakistanis are facing severe financial pressure, especially after US-Iran war.
Budget 2026: Pakistan slashes Foreign Card Tax from 5% to 0.5%
