Pakistan Cuts Airfare Tax for Workers Flying to the GCC

1 month ago Editor

Pakistan has reduced the airfare tax for blue-collar workers traveling to the UAE and other GCC countries, lowering the excise duty to Rs5,000 per ticket. This move eases the financial burden on laborers seeking job opportunities abroad.

In a move to ease the financial burden on blue-collar workers, the Pakistani government has reduced the federal excise duty on air tickets for laborers flying to the UAE and other Gulf Cooperation Council (GCC) nations. A fixed tax of Rs5,000 (Dh66) will now be levied on passengers holding a verified labor visa, a significant decrease from the previous Rs12,500 (Dh165).

This tax reduction, effective from August 10, 2024, applies to all international journeys from Pakistan to GCC countries for workers whose visas are confirmed by the Protector of Emigrants. Dubai-based carrier flydubai, along with other airlines operating in this corridor, has acknowledged compliance with the new regulation, ensuring that eligible passengers benefit from the lower fares.

The air route between Pakistan and the UAE is one of the busiest, with high demand and limited seat availability often driving up ticket prices. The reduced excise duty aims to alleviate some of the cost pressures on workers seeking employment opportunities abroad, particularly in the UAE, Saudi Arabia, Oman, Qatar, and Kuwait, which are home to the largest Pakistani diaspora.

This measure comes at a time when the Pakistani government has increased taxes on Business Class air tickets but has chosen to support laborers by lowering their travel costs. The GCC remains a key destination for Pakistani workers, with over 862,000 individuals from the country migrating to the region in the past year alone.