ISLAMABAD: The Federal Board of Revenue (FBR) has revised the Federal Excise Duty (FED) rates on domestic and international air travel services under the Federal Excise Act, 2005, as amended up to June 30, 2026.
The revised duty structure applies to passenger air travel within Pakistan and international flights originating from the country. The updated rates cover domestic routes and premium-class international tickets, while existing duty provisions for economy-class international travel remain unchanged.
Under the amended law, passengers travelling on domestic flights will pay Rs1,500 in FED for long routes and Rs900 for short routes.
However, socio-economic routes listed under Serial No. 9 of Table II of the Third Schedule will continue to receive the treatment prescribed under the law. Routes that were exempt from FED as of July 1, 2014, will also remain exempt.
For international travel, the existing FED applicable to economy and economy plus tickets issued on or after July 1, 2024, will continue without changes.
The revised rates apply to club, business, and first-class tickets issued on or after July 1, 2026, with duty varying according to the International Air Transport Association (IATA) Traffic Conference Areas.
Passengers travelling to North, Central and South America (IATA Area 1) will pay Rs50,000 in FED on premium-class tickets.
For Middle East and Africa, the duty has been fixed at Rs25,000, while premium-class passengers travelling to Europe will pay Rs40,000.
The same Rs40,000 FED will apply to premium-class travel to destinations in the Far East, Australia and New Zealand (IATA Area 3).
The revised duty structure is expected to increase airfares for passengers travelling in business, club and first class on international routes. The amendments form part of broader tax measures introduced through the updated Federal Excise Act to strengthen revenue collection and improve tax compliance.
