The federal government of Pakistan has introduced a fixed federal excise duty of Rs 5,000 on air tickets for passengers traveling to Gulf countries on labour visas.
This move aims to streamline taxation and generate additional revenue from outbound labour migration.
The Federal Board of Revenue (FBR) has issued a notification outlining the details of this new policy. 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.
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 significant number of Pakistani workers who travel to the Gulf region for employment opportunities.
The fixed excise duty will be applied per ticket for all international flights from Pakistan to GCC countries, specifically for those traveling on labor visas.
