Flights' Fares Go Up Due To Govt's Super Tax

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Flights' fares go up due to govt's super tax

A notification issued by the federal government says that the Federal Excise Duty (FDA) RG tax has been increased from Rs10,000 to 50,000 on all first and business tickets for travel with effect from July 1.

KARACHI: The fares of private airlines have gone up for passenger flying abroad after the federal government imposes 10pc super tax.

The development too place as the government increased international airfares for passengers travelling via first class and business class.

“The Federal Excise Duty (FDA) RG tax has been increased from Rs10,000 to 50,000 on all first and business tickets for travel with effect from July 1, 2022,” the notification stated.

It also said that difference would be collected on all tickets issued prior to July 2022 at the time of check-in.

Prime Minister Shehbaz Sharif had earlier imposed a super-tax of 10 percent on large-scale manufacturers and industries in the country in order to address the economic woes of the country.

The prime minister, while announcing the tough decisions in the wake of the ongoing economic situation, said that industries related to steel, cement, sugar, oil and gas, fertilizers, energy and terminal, and textile would face a 10 percent tax.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.