UAE - First and business class travel to Pakistan has become costlier following imposition of taxes on luxury services by the government.

Pakistan government has increased the rate of federal excise duty (FED) on business and first-class air tickets, from PRK 10,000 (Dh 179.56) to PKR 50,000 (Dh 897.78), media reports have said. Airline sources have also confirmed these reports.

An official with Pakistan International Airlines told Khaleej Times the new duties are applicable starting July 1, irrespective of the issuance of tickets.

Confirming the development, the PIA spokesperson said that the tax hike will not affect the price of the national carrier’s tickets as its aircraft do not have business class facilities.

However, in a notice issued to travel agencies by Emirates airlines, which offers direct business and first-class flights to Pakistan, passengers, who have already paid for their tickets issued on July 1 or after, are advised to pay the taxable amount at the airport.

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