Federal Board of Revenue has clarified about implementation of Federal Excise Duty for enhancing rate on International Air Tickets.

In a press release, FBR said Federal Excise Duty is chargeable on Club, Business and First class international air tickets under Section 3 of 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, enhanced rate of FED on air tickets under new finance bill 2022 will be chargeable only on international tickets(Club, Business & First class) issued on and after 1st of July, this year.