Business and First Class Air Ticket Excise Duty in Pakistan: Rs 25,000 to Rs 50,000
Excise duty on club, business and first class tickets issued from 1 July 2026 is Rs 25,000 to Rs 50,000 by region. See the table and how to check your fare.
For club, business and first class tickets issued on or after 1 July 2026, federal excise duty on international flights from Pakistan is Rs 50,000 for the Americas, Rs 25,000 for the Middle East and Africa, Rs 40,000 for Europe and Rs 40,000 for the Far East, Australia and the Pacific. The Finance Act 2026 set these figures, which are far lower than the ones in the older Act text we read.
The duty is a fixed amount per ticket, not a percentage of the fare. It depends on the class you fly and on the region you fly to. We read the Finance Act 2026 in the Gazette of 26 June 2026 and the Federal Excise Act text on FBR's download site.
The duty applies to premium class tickets for flights out of Pakistan
The Federal Excise Act charges duty on services provided in respect of air travel by passengers who start an international journey from Pakistan. The Finance Act 2026 changes the rate for club, business and first class tickets issued on or after 1 July 2026.
The word "issued" matters. The date is when the ticket is issued, not when you fly. A ticket issued before 1 July 2026 for a later flight is not covered by the new figures in the way the Act is written. We did not read a transition rule, so ask your airline or agent which rate it used.
Economy and economy plus tickets are listed separately in the Act, as sub-clause (i). The Finance Act 2026 does not change that sub-clause, as far as we read. This page is about premium cabins only.
The fixed duty depends on the region you fly to
The Act uses the three IATA traffic conference areas. Area 1 is North, Central and South America. Area 2 splits into the Middle East and Africa, and Europe. Area 3 is the Far East, Australia, New Zealand and the Pacific Islands.
| Region of travel | Duty from 1 July 2026 | Rate in the older Act text we read |
|---|---|---|
| Area 1: North, Central, South America | Rs 50,000 | Rs 250,000 |
| Area 2: Middle East and Africa | Rs 25,000 | Rs 75,000 |
| Area 2: Europe | Rs 40,000 | Rs 150,000 |
| Area 3: Far East, Australia, New Zealand, Pacific | Rs 40,000 | Rs 150,000 |
The right-hand column comes from the Federal Excise Act text updated to 23 February 2023. We did not read a consolidated text for 2024 to 2026, so another change may sit between the two. Treat it as the last version we could confirm, not as the rate on 30 June 2026.
Take a ticket from Lahore to London in business class. London sits in Europe, so the figure in the Act is Rs 40,000. A ticket to a Gulf city falls in the Middle East line, at Rs 25,000.
Check the duty line on your ticket before you pay
The duty is part of the cost of the ticket. An airline or agent normally shows it among the taxes and charges. We did not read the collection rules, so this is a practical check, not a legal test.
- Confirm the cabin: club, business or first class.
- Confirm the date the ticket is issued. It must be on or after 1 July 2026 for the new rates.
- Find the destination region in the table above.
- Ask the agent to show the excise duty line on the fare breakdown.
- Compare that amount with the fixed figure for your region. Ask why if it differs.
- Keep the e-ticket and the fare breakdown with your travel papers.
Extra baggage and refund rules are separate. If you fly on the national carrier, see the PIA baggage rules for cabin bags and excess charges, and the comparison of domestic baggage allowance across five airlines for flights inside the country.
Travellers with a dispute should keep their papers and ask in writing
If your fare breakdown shows a duty that does not match the table, write to the airline or agent first. Quote the date of issue, the cabin and the destination. Keep their reply.
If the answer does not settle it, you can raise it with FBR. Our guide to complaining to the Federal Tax Ombudsman about FBR covers delays and maladministration, though not every fare dispute is an FBR matter. Many are between you and the airline.
Travel insurance can cover cancelled trips but does not refund tax. If your plans may change, read the guide to claiming travel insurance in Pakistan before you buy a premium ticket.
Common questions about air ticket excise duty
How much is the excise duty on a business class ticket from Pakistan?
It is Rs 50,000 to the Americas, Rs 25,000 to the Middle East and Africa, Rs 40,000 to Europe and Rs 40,000 to the Far East, Australia and the Pacific, for tickets issued on or after 1 July 2026.
Does the duty apply to economy tickets?
Economy and economy plus are listed in a separate sub-clause. The Finance Act 2026 changes the premium class sub-clause only, as far as we read.
Is the duty a percentage of the fare?
No. The Act sets a fixed rupee amount per ticket for each region.
Does the date of travel or the date of issue decide the rate?
The Act says tickets issued on or after 1 July 2026. The issue date is the test as written.
Which flights does the duty cover?
The Federal Excise Act text covers air travel by passengers embarking on an international journey from Pakistan.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 14 October 2026. The new rates and the issue date come from the Finance Act 2026, published in the Gazette of 26 June 2026 at download1.fbr.gov.pk. The older figures and the scope of the duty come from the Federal Excise Act updated to 23 February 2023. We did not read a 2024 to 2026 consolidated text, the collection rules or any FBR circular.
About the author
Senior Writer, Public Services and Technology
Shahid joined us in 2024 as an author. He is a senior contributor to Pakistan's leading technology websites. He writes detailed articles, mostly covering his expertise in the latest tech, mobiles, apps, gadgets, and step-by-step guides. His ideology is to help people understand the latest trends and explain complex methods through very easy-to-understand guides.
