Federal excise duty chargeable on club, business & first class int’l air tickets: FBR
ISLAMABAD ( Web News )
Federal Board of Revenue(FBR) has stated that federal excise duty is chargeable on club, business and first class international air tickets under Section 3 of the Federal Excise Act, 2005.
Furthermore, sub-rule (8) of the rule 41A stipulates that the FED is chargeable at the time of issuance of air tickets. Thus, the enhanced rate of FED on air tickets under the new Finance Bill 2022 will be chargeable only on international tickets(club, business & first class) issued on and after July 01, 2022.
The FBR has further clarified that as federal excise duty is chargeable at the time of issuance of air tickets, therefore, the enhanced rate of federal excise duty at Rs 50,000 (previously Rs 10,000) is not applicable on the club, business & first class international air tickets already issued before July 01, 2022.