In a significant move aimed at regulating travel costs for workers, the federal government has introduced a new tax on air tickets for laborers traveling to Gulf countries.
This measure is intended to streamline revenue collection from international labor travel.
A fixed Federal Excise Duty (FED) of Rs5,000 has been imposed by the federal government on air tickets for passengers traveling to Gulf countries on labor visas.
This new tax was detailed in a notification issued by the Federal Board of Revenue (FBR) on Wednesday.
According to the notification, a fixed tax of Rs5,000 will be levied on air tickets for Pakistani passengers traveling to Gulf countries on labor visas, as specified under Clause (i) of Sub-Clause (b) of Serial Number 3 of Table Two of the First Schedule to the Federal Excise Act 2005.
The FBR has specified that the labor visa must be printed on the passengers’ passports and verified by the Protector of Emigrants (Bureau of Emigration and Overseas Employment).
The notification further states that this fixed excise duty will apply to international travel from Pakistan to Gulf Cooperation Council (GCC) countries for those on labor visas, with the tax being collected per ticket.