Sales Tax Instructions

Sales Tax Instructions, 2009
FEDERAL EXCISE CIRCULAR NO. 01/2006
C. No. 1/1-STB/2006 DATED 24 TH JULY, 2006
SUBJECT:
EXCISE DUTY ON INTERNATIONAL AIR TRAVEL.
With effect from 1 st August, 2006, all airlines and aircraft operators shall charge
excise duty on tickets issued to passengers embarking on international air journey
originating/starting from Pakistan. The destination-wise rates of excise duty for various
classes of tickets are mentioned in the table below:-
TABLE-1
S. Destinations
Rate of excise duty in Pak rupees
No.
Economy class Premier, club,
and economy plus business and first
class
(1) (2) (3) (4)
1. SAARC region, UAE 1500 2500
(Middle East), Saudi Arabia,
Africa, Afghanistan
2. Europe, Far East, China, 2500 4000
USA, Canada, Australia,
South America, others.
The excise duty on above rates shall be chargeable on all tickets issued directly by the
airlines or through their agents for the international journey starting/originating from any
where in Pakistan, whether such tickets are issued in Pakistan or outside Pakistan. A
ticket that covers more than one destination on flights operated by two or more airlines
shall be chargeable to excise duty by the airline issuing the ticket and shall be charged at
the rate of excise duty applicable for the farther destination in terms of distance from
Pakistan.
2. The persons mentioned below in the table shall be exempt from the levy
of subject excise duty:-
TABLE-2
S. No. Category of persons
1. Hajj passengers
2. Diplomats
3. Supernumerary crew
4. Passengers having arrived in Pakistan from abroad on
tickets issued outside Pakistan and are embarking only
for return journey from Pakistan.