PM suspends illegal FDE collection at airports

ISLAMABAD: Prime Minister Shehbaz Sharif has taken strict notice of the collection of Rs50,000 federal excise duty from passengers at airports.

He expressed strong displeasure at the collection of federal excise duty from passengers at the airports.

He directed that the illegal order to collect FED at airports should be immediately revoked and the practice of causing trouble to the passengers should be discontinued immediately.

The prime minister ordered an investigation into the collection of federal excise duty. He said it should be investigated as to how the excise duty was collected from the passengers without the approval of the cabinet.

He instructed the finance minister that after an immediate inquiry, strict action under the law should be taken against those responsible for the illegal act. He said those those responsible for passengers’ suffering had no right to hold their posts.

PM Shehbaz Sharif asked the finance minister to return the money to the passengers from whom federal excise duty was collected.

He called for immediate implementation of his orders and submission of a report after action against the persons responsible.

The Federal Board of Revenue (FBR) has increased the tax amount on business class passengers from Rs10,000 to Rs50,000.

The tax  were applicable for travel from July 1, 2022 regardless of the issuance of tickets but the order has now been suspended.

Pakistan International Airline (PIA) spokesperson said that the tax hike will not affect the price of the national carrier’s tickets because its planes do not have business class facilities.

He clarified that on PIA’s economy plus class, similar taxes which are applicable to the economy class are applied.

Federal Board of Revenue (FBR) has clarified that FED is chargeable on Club, Business and First Class international air tickets under Section 3 of the Federal Excise Act, 2005. It stated that sub-rule (8) of 41A stipulates that FED is chargeable at the time of issuance of air tickets.

It added the enhanced rate of FED on air tickets under the new Finance Bill 2022 will be chargeable only on international tickets (Club, Business and First Class) issued on and after July 1, 2022.

FBR has further clarified that as FED is chargeable at the time of issuance of air ticket. Therefore, the enhanced rate of federal excise duty at Rs50,000 (previously Rs.10,000) is not applicable on international air tickets already issued before July 1.

Also Read

Pakistan Railways to run three special trains on Eid

Three special trains will run on the occasion of Eid-ul-Azha The first...

For the latest BOL Live News, Follow on Google News. Read more on Latest Pakistan News on oldsite.bolnews.com