Duty on foreign travel deferred

Published July 1, 2006

ISLAMABAD, June 30: The Central Board of Revenue has delayed implementation of the levy of 15 per cent federal excise duty (FED) on international travel to Aug 1.

The excise duty was supposed to be effective from July 1.

The duty would be charged on international travel from Pakistan from Aug 1, irrespective of the date of issuance of tickets, said a CBR notification issued here on Friday night.

Through the Finance Act, 2006, in the budget, the government had extended the scope of 15 per cent FED to international travel excluding Haj flights.

Presently, 15 per cent FED is charged on domestic air travel.

Interestingly, the decision to levy FED on international travel has become part of the Finance Act, 2006, passed by the National Assembly on June 22.

Legally, for making changes in the Act, amendments have to be moved and passed by the National Assembly.

When contacted, a tax official told Dawn that the CBR could not hold in abeyance implementation of any decision of the Act.

The only way was to issue a notification to exempt the particular service or commodity from the levy of FED for a certain time, he added.

The normal process of notification involves prior vetting from the law ministry followed by allotting a number to the notification from printing corporation, which takes normally two to three days in case of urgency.

Opinion

Editorial

A turbulent 2023
Updated 12 May, 2024

A turbulent 2023

Govt must ensure judiciary's independence, respect for democratic processes, and protection for all citizens against abuse of power.
A moral victory
12 May, 2024

A moral victory

AS the UN General Assembly overwhelmingly voted on Friday in favour of granting Palestine greater rights at the...
Hope after defeat
12 May, 2024

Hope after defeat

ON Saturday, having fallen behind Japan in the first quarter of the Sultan Azlan Shah Cup final, Pakistan showed...
Taxing pensions
Updated 11 May, 2024

Taxing pensions

Tax reforms have failed to deliver because of distortions created by the FBR bureaucracy through SROs, apparently for personal gains.
Orwellian slide
11 May, 2024

Orwellian slide

IN recent years, Pakistan has made several attempts at introducing an overarching mechanism through which to check...
Terror against girls
11 May, 2024

Terror against girls

ONCE again, the ogre of terrorism is seeking the sacrifice of schoolgirls. On Wednesday, just days after the...