The fixed amount of federal excise duty (FED) would be charged on all tickets issued either directly by the airlines or through their agents for the international journey starting/originating from anywhere in Pakistan, whether such tickets are issued in Pakistan or outside the country.
The Board on Tuesday issued Federal Excise General Order (FEGO) No 1 of 2006 to clarify applicability of excise duty on international travels. According to the Order, a ticket that covers more than one destination on flights operated by two or more airlines shall be subject to excise duty by the airline issuing the ticket and shall be charged at the rate applicable for the farther destination in terms of distance from Pakistan. All airlines and aircraft operators shall charge excise duty on tickets issued to passengers from August 1, 2006, the Order added.