The Federal Board of Revenue (FBR) has increased federal excise duty (FED) rates on domestic and international air travel by Rs 40 and Rs 100, respectively, from January 20, 2012. In this connection, the FBR has superseded the federal excise duty rates prescribed in the Federal Excise Act, 2005, through SRO 47(I)/2012 issued here on Tuesday February 14, 2012.
According to the new slabs of the FED applicable on domestic and international passengers, the rate of duty would be 16 percent of the charges plus Rs 60 per ticket on the services provided or rendered in respect of travel by air of the passenger within the territorial jurisdiction of Pakistan. Previously, the rate of duty was 16 percent of the charges plus Rs 20 per ticket on the domestic air travel. Under the services of providing international air travel facilities, revised rate of excise duty has been specified for passengers embarking for different international destinations.
For passengers embarking to or from Saarc region, United Arab Emirates (Middle East) Saudi Arabia, Africa, Afghanistan, the revised rate of excise duty would be Rs 3,340 for economy and economy plus classes and Rs 4,340 for club, business and first classes. Previously, the rate of duty was Rs 3,240 for economy and economy plus classes and Rs 4,240 for club, business and first classes.
For passengers embarking to or from Europe, Far East, China, United State of America, Canada, Australia, South America and others, the revised rate of excise duty would be Rs 4,340 for economy and economy plus classes and Rs 5,840 for club, business and first classes. Previously, the rate of duty was Rs 4,240 for economy and economy plus classes and Rs 5,740 for club, business and first classes.
The SRO 47(I)/2012 said: In exercise of the powers conferred by sub-section (4) of section 3 of the Federal Excise Act, 2005 and in supersession of federal excise duty rates prescribed against S.No 3 of Table-II of the first Schedule to the Federal Excise Act, 2005, the Federal Government has levied federal excise duty on the services mentioned ln the said Act.
Under the excise rules for airlines, no airline or person-in-charge of aircraft shall allow any passenger to board the aircraft unless he pays excise duty. Excise duty charged on tickets, which are subsequently cancelled or not utilised for travel shall be refundable to the passengers in the same manner as the fare is refunded.
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