The Central Board of Revenue (CBR) on Thursday ordered airlines to collect 15 percent federal excise tax from passengers leaving Pakistan after midnight June 30, 2006 on tickets purchased outside Pakistan.
The finance bill 2006 has imposed this new levy on tickets for international travel. Airlines had asked for clarification from the CBR with regard to tickets purchased before July 1 and partly used by passengers, foreigners as well as Pakistanis living abroad had purchased tickets outside Pakistan.
Airlines had not collected the government levy at the time of sale. Increase in airline charges normally does not apply on partly travelled/used tickets. Payment of $100 federal excise on New York-Karachi-New York tickets is a steep charge. Airline officials expect fistfight and mayhem at the international departure lounge after midnight tonight.