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 labor visas. This policy aims to streamline taxation and boost revenue from outbound labor migration.
The Federal Board of Revenue (FBR) issued a notification detailing the new policy, which specifies that a fixed tax of Rs 5,000 will be applied to air tickets for Pakistanis traveling to Gulf Cooperation Council (GCC) countries on labor visas. The tax is mandated under clause (b) of serial number 3 of the first schedule of the Federal Excise Act, 2005.
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For proper enforcement, the labor visa must be clearly printed on the worker’s passport and authenticated by the Protector of Emigrants, a division of the Bureau of Emigration and Overseas Employment. This requirement is meant to verify the worker’s status and eligibility for the tax.
The FBR’s decision to impose this duty underscores the government’s initiative to regulate and gain economic benefits from the substantial number of Pakistani workers seeking employment in the Gulf region. The fixed excise duty will be applied per ticket for all international flights from Pakistan to GCC countries for those traveling on labor visas.
