Pakistan government’s recently announced Budget 2024-25 includes new excise duty hikes on business and club class air tickets, making travel more expensive for those seeking extra legroom and amenities.
These changes take effect on July 1st and will be felt most by travelers heading to destinations like the United States, Canada, North and Latin America. The excise duty for these routes has jumped significantly, from Rs250,000 to Rs350,000. That’s a cool Rs100,000 extra you’ll need to shell out for that premium flying experience.
Europe isn’t spared either. Business class flights to European countries will now come with a Rs210,000 duty, up from the previous Rs150,000. This represents a Rs60,000 increase for those hoping to explore European destinations in style.
Travelers to New Zealand and Australia will also face a similar Rs 60,000 duty hike, bringing the total to Rs 210,000. And it’s not just long-haul trips that are affected. The duty on business class tickets to popular Asian destinations like China, Malaysia, and Indonesia has also been raised to Rs 210,000.
Meanwhile, travelers to Saudi Arabia, UAE, the Middle East, and African countries will now pay an additional Rs 30,000, with the new excise duty totaling Rs 105,000. These changes reflect the government’s strategy to increase revenue through higher taxes on luxury travel options.
