Pakistani Government Imposes Fixed Excise Duty on Air Tickets for Gulf-Bound Workers

The federal government of Pakistan has announced the introduction of a fixed federal excise duty of Rs 5,000 on air tickets for passengers traveling to Gulf countries on labour visas. This policy, aimed at streamlining taxation and generating additional revenue from outbound labour migration, was detailed in a recent notification issued by the Federal Board of Revenue (FBR).

According to the notification, under clause (b) of serial number 3 of the first schedule of the Federal Excise Act, 2005, a fixed tax of Rs 5,000 will be levied on air tickets for Pakistanis traveling to Gulf Cooperation Council (GCC) countries on labour visas. This measure is expected to regulate the significant number of Pakistani workers who travel to the Gulf region for employment opportunities.

To ensure proper implementation, the labour visa must be visibly printed on the worker’s passport and authenticated by the Protector of Emigrants, part of the Bureau of Emigration and Overseas Employment. This stipulation is intended to confirm the worker’s status and eligibility for the tax.

The FBR’s decision to impose this tax highlights the government’s effort to regulate and benefit from the large number of Pakistani workers who migrate to the Gulf region for better employment prospects. The fixed excise duty will be applied per ticket for all international flights from Pakistan to GCC countries, specifically targeting those traveling on labor visas.

This policy is part of a broader strategy to enhance government revenue while ensuring that the labour migration process remains regulated and transparent. The additional revenue generated from this tax will contribute to national development projects and support economic growth.