Pakistan suggests reduction in air ticket prices for Europe, Middle East, and Australia

ISLAMABAD: The federal budget 2026–27 has proposed a big reduction in the Federal Excise Duty (FED) on business class international air travel from Pakistan.

According to the proposal, the tax on business class tickets to the United States may be reduced from Rs350,000 to Rs50,000. For travel to the Middle East and Africa, it could drop from Rs105,000 to Rs25,000.

For flights to Europe, the duty is suggested to come down from Rs210,000 to Rs40,000. The same Rs40,000 rate is also proposed for destinations in the Far East and Australia.

Officials from the Federal Board of Revenue (FBR) say the move is aimed at supporting the aviation sector, increasing passenger demand, and making international travel more affordable.

They believe the proposed cuts will help airlines, boost travel activity, and provide relief to passengers flying abroad.