Rs12,500 tax to be imposed on economy class tickets from July 1

The National Assembly on Friday approved a massive tax increase on international air travel tickets in the federal budget 2024-25.

According to the details, economy and economy plus tickets will incur a tax of Rs12,500 from July 1.

The move is expected to impact travellers planning to fly abroad, as the additional tax will be levied on top of the ticket price.

The tax increase is not limited to economy tickets, as business class and club class tickets will also face substantial tax hikes.

Tickets to America and Canada will incur a tax of Rs100,000, while those to Europe will face a tax of Rs60,000.

Travelers to Europe in business, first, and club classes will have to pay a tax of Rs210,000. 

Business class and club class tickets from New Zealand and Australia will experience a hike of Rs60,000 tax.

Middle Eastern countries, including the UAE and Saudi Arabia, and African countries will also face major tax increases of Rs30,000 on business and club class tickets.

The approval of the tax increase is part of the government's efforts to generate additional revenue. 

However, travellers and industry experts have expressed concerns about the impact of the move on the travel industry and the economy at large.