Islamabad July 3 2022: Federal Board of Revenue(FBR) has stated that Federal Excise Duty is chargeable on Club, Business&First class international air tickets under Section 3 of the Federal Excise Act, 2005.
Furthermore, sub-rule(8) of the rule 41A stipulates that 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 1st July, 2022. 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 1st July,2022.
