FED on foreign travels: full amount to be deposited in treasury

The government has directed the airlines to deposit full amount of Federal Excise Duty (FED) collected on tickets issued for international travels. The airlines would not be entitled to adjustment of FED against input tax.
The non-adjustment of FED has been notified through Federal Excise General Order (FEGO) No 2 of 2006 issued on Friday. According to the FEGO, for the payment of excise duty chargeable on international air travel, no ''input tax adjustment'' would be allowed to the airlines.
The airlines charging specific rates of excise duty as per Federal Excise Circular No 01/2006 shall deposit in the government treasury the entire collected amount of excise duty, without making any deductions.