Punjab Imposes Tax on Airline Tickets

Discuss issues and news related to PIA, Pakistani airlines and Pakistan's civil & military aviation.
cashy
Registered Member
Posts: 207
Joined: Thu Dec 14, 2006 6:08 pm
Location: United Kingdom

Punjab Imposes Tax on Airline Tickets

Post by cashy »

Tax imposed in 2015-16 Budget by Punjab Government on airline industry: :(

LAHORE: (Dunya News) – Heavy taxes on air tickets have on Friday been recommended to be imposed in Punjab Budget 2015-16. According to the recommendation, tax up to Rs. 10,000 will be imposed on the air tickets, reported Dunya News.

According to Dunya News sources, Rs. 2500 tax will be imposed on flying within the premises of Punjab province and traveling up to 500 kilometers. Rs. 1500 will be imposed on traveling less than 500 km. Rs. 5000 tax will be imposed on the Economy and Economy Plus classes of international flights while Business class and First class tickets will be taxed by Rs. 10,000.

Diplomats and the Hajj, Umra aspirants will not be taxed while 16% tax will be imposed on chartered flights.

http://dunyanews.tv/index.php/en/Pakist ... -on-air-ti
cashy
Registered Member
Posts: 207
Joined: Thu Dec 14, 2006 6:08 pm
Location: United Kingdom

Re: Punjab Imposes Tax on Airline Tickets

Post by cashy »

what will be the status of the flights from Islamabad, as airport is in federal territory...
User avatar
Hamad
Registered Member
Posts: 1453
Joined: Sun Jan 28, 2007 10:32 am
Location: Germany

Re: Punjab Imposes Tax on Airline Tickets

Post by Hamad »

LAHORE - The Punjab Assembly adopting the Finance Bill 2015 has formally approved the annual budget 2015-16 on Wednesday, while the Opposition boycotted the session when the Treasury moved the third bill from the agenda.
(...) Source: The Nation

My Question now:
Does this taxapply on tickets that are issued in Pakistan or for all atickets issue arround the world for pakistani flights?

And as far as I know this all should apply from 01st Aug this year - so whats about tickets already issued before this date - do PAX have to pay this Tax at the Airport.

Hope somebody can answer my questions - many thanks :)
Best Regards / Wa´alaikumusalam
Image
User avatar
Abbas Ali
Site Admin
Posts: 52155
Joined: Thu Aug 05, 2004 6:52 pm
Location: Pakistan

Re: Punjab Imposes Tax on Airline Tickets

Post by Abbas Ali »

International air travel: Punjab will take up double-taxation issue with FBR

August 10, 2015

SOHAIL SARFRAZ


Punjab government will take up the matter of double taxation on international air travel with the Federal Board of Revenue (FBR) for possible withdrawal of taxes imposed by the FBR on air tickets through Finance Act 2015.

Sources told Business Recorder here on Sunday that through Finance Act 2015, Punjab had levied Punjab sales tax on air tickets, chartered flights and carriage of goods by air and rail. According to Punjab Revenue Authority (PRA), both the Secretary Law and Advocate General Punjab had opined that the said levy was based on sound constitutional footing. Therefore, PRA has asked the FBR to withdraw FED on air tickets.

In this regard, Chief Minister Punjab has directed the chief Secretary/Finance Secretary/ Chairperson PRA to immediately take up the subject matter in line with the relevant provisions of the Constitution (18th Constitutional Amendment) and 7TH NFC Award. Chief Minister Punjab further desired that PRA should immediately start collection of this tax and necessary directions may be issued to PRA''s field formations in this regard.

When contacted, senior FBR official said that it is a double taxation on international air travel as both the FBR and PRA have imposed tax on air travel. The government has to see whether the PRA was authorised to impose sales tax on air tickets under Fourth Schedule of the Constitution, he added.

Section 236L, introduced through Finance Act, 2014, provided for collection of advance tax on air tickets of classes other than economy for journeys originating from Pakistan as a percentage of the gross amount of international air tickets. To properly monitor withholding tax under this section, through Finance Act, 2015, the rates have been amended and instead of applying rate on gross amount of international air ticket, fixed amount per air ticket has been prescribed which is Rs 16,000 in case of First Class and Rs 12,000 in case of Business/Club class i.e. other than economy.

Source: brecorder.com
Dil Dil Pakistan... Jaan Jaan Pakistan

See you at:
Image
User avatar
AbdulAziz
Registered Member
Posts: 913
Joined: Thu Aug 05, 2004 10:33 pm

Re: Punjab Imposes Tax on Airline Tickets

Post by AbdulAziz »

Is this tax going to be included in tkt price ? or have to pay at counters ?
User avatar
raihans
Registered Member
Posts: 4672
Joined: Sun May 01, 2005 12:09 pm
Location: Kuwait

Re: Punjab Imposes Tax on Airline Tickets

Post by raihans »

Hamad wrote:My Question now:
Does this taxapply on tickets that are issued in Pakistan or for all atickets issue arround the world for pakistani flights?

And as far as I know this all should apply from 01st Aug this year - so whats about tickets already issued before this date - do PAX have to pay this Tax at the Airport.

Hope somebody can answer my questions - many thanks :)
I am traveling between KWI-LHE sector for a decade, twice i have paid newly imposed taxes, 1 time it was Rs. 100 while traveling with Gulf Air, i paid at LHE check-in counter, the other was Rs. 1,670 (if i remember well) that i paid to PIA during check-in while traveling from LHE for KWI. Both of the taxes were imposed lately after i purchased my tickets online. Hope this answers your question.
Raihan SR Bakhsh

flickr.com/photos/raihanshahzad
EY-B77W, A345, A320, A319, EK-B773, B77W, A388, FZ-B738, GF-L1011, B732, A332, A320, A319, KU-A343, AB6, A310, A320, NL-A320, PK-B707/720, B733, B772, B77L, AB4, A310, A320, QR-A320, A321, A333, A359, A35X, B77W, B788, WY-B738, B739, A333