Airfares get more expensive in Pakistan; details here

ISLAMABAD: The federal government has announced a substantial hike in excise duty on air tickets in the FY Budget 2024-25.

The new fares, which is likely to come into effect on July 1, 2024, is expected to increase the cost of air travel for passengers, particularly those traveling in business and club class.

For economy and economy plus air tickets issued on or after July 1, 2024, passengers will now pay a duty of Rs. 12,500. The increase will likely to affect a large number of travelers, as economy class tickets are the most popular choice for many.

Meanwhile, travelers to the Middle East and African countries, including popular destinations like Dubai and Saudi Arabia, will now pay Rs. 105,000 duty on their business/club class air tickets, a significant increase of Rs. 30,000 compared to the outgoing fiscal year.

For travelers to the United States and Canada, the excise duty per business/club class ticket has been increased to Rs. 100,000. The duty on business and club class tickets to North America, Latin America, and Canada has been increased from Rs. 250,000 to Rs. 350,000 per ticket, a massive hike of Rs. 100,000.

The duty on business and club class tickets to European destinations has been increased by Rs. 60,000 to Rs. 210,000. This increase is likely to affect travelers to popular destinations like London, Paris, and Rome.

For travel to China, Malaysia, and Indonesia, the excise duty on business and club class tickets has been increased to Rs. 210,000. Similarly, the duty on business and club class tickets to New Zealand and Australia has also been increased to Rs. 210,000.