Saturday, August 20, 2022
HomeEconomyFBR clarifies about enhanced rate of FED on international air ticket

FBR clarifies about enhanced rate of FED on international air ticket

July 2, 2022: The Federal Board of Revenue (FBR) on Saturday clarified about enhanced rate of Federal Excise Duty (FED) on international air ticket.

The 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, said a press release issued.

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.

Press Release

Posted on: 2022-07-03T00:32:53+05:00

33862

RELATED ARTICLES
- Advertisment -

Most Popular