IATA has requested Pakistan to cancel the recent increase in taxes on air tickets
The International Air Transport Association (IATA) has asked the Pakistani government to reduce taxes on air tickets, as reported by ARY News.
In the budget for 2024-25, the federal government significantly increased the Federal Excise Duty (FED) on international flights. The new notification states that FED on economy and economy plus tickets has gone up by 150 percent.
IATA wrote a letter to Pakistan’s finance ministry requesting an immediate rollback of the 150 percent tax increase on international air tickets. The organization pointed out that raising taxes without consulting stakeholders goes against international civil aviation rules and regulations.
The increase in taxes negatively affects airlines and travel agents, IATA added in its letter. The Pakistani government has been urged to reverse its decision on imposing such a high tax on air tickets.
On July 6, the Travel Agents Association of Pakistan (TAAP) declared the recent tax hike on air tickets illegal, saying it has caused a severe crisis in the industry.
During a press conference at their office, former chairman and executive committee member Nadeem Sharif highlighted that these measures could destroy the industry.
APJC Chairman Muhammad Hanif Ranch criticized the government’s actions over the last five days, stating that they have broken existing laws. He described the tax increases as random and harmful to the travel and tourism sector.
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