The new budget has imposed hefty taxes on air travel, causing significant distress for Pakistani travelers.
Taxes on airline tickets have increased by 40% to 150%, impacting Umrah pilgrims and those traveling to Gulf countries, Europe, the US, Canada, and Australia.
The government’s move to levy heavy taxes on air tickets in the new budget aims to generate foreign exchange but has placed a substantial financial burden on outbound travelers.
The cost of economy and economy plus tickets has surged, with taxes on all economy class tickets rising from PKR 5,000 to PKR 12,500. Business and first-class ticket taxes for the US have jumped from PKR 250,000 to PKR 350,000.
The Middle East and Africa ticket taxes have risen from PKR 75,000 to PKR 105,000, while Europe ticket taxes have soared from PKR 150,000 to PKR 210,000.
Similarly, taxes on business and first-class tickets to Australia, New Zealand, Canada, Indonesia, Japan, and Korea have escalated from PKR 150,000 to PKR 210,000.
Passengers and industry stakeholders, including airline operators, travel, and tour operators, are severely affected by the tax hike. They urge the Finance Minister to reverse these taxes, citing a significant impact on travel costs, with families facing an additional expense of PKR 60,000 to PKR 70,000.
Experts warn that the increased taxes could lead to more passengers purchasing connecting flights from foreign countries to avoid the high costs, potentially transferring the nation’s foreign exchange earnings abroad.
The Travel Agents Association has rejected the tax hikes and hinted at taking legal action and protesting against the decision.
This budgetary decision has made air travel more expensive and complicated for Pakistani travelers, posing a threat to the travel industry’s stability and growth.
