News Paper: Business Recorder
ISLAMABAD (July 19 2010): Pakistani diplomats working in foreign missions would not be entitled to avail exemption of federal excise duty (FED) on tickets purchased for international air travel. In this connection, Federal Board of Revenue (FBR) has issued instructions to all Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs).
According to the FBR directive, Pakistani diplomats are citizens of Pakistan and are diplomats only when in a foreign country. Thus the subject exemption of FED on international air travel notified vide SRO 778(I)/2006 is available only to foreign diplomats.
Under SRO 778(I)/2006, the federal government has exempted excise duty chargeable on the services of travel by air on international journey from Pakistan provided or rendered to the persons including Hajj passengers, diplomats, supernumerary crew and passengers having arrived in Pakistan from abroad on tickets issued outside Pakistan and are embarking only for return journey from Pakistan.
With effect from August 1, 2006, all airlines and aircraft operators are charging excise duty on tickets issued to passengers embarking on international air journey originating/starting from Pakistan. The excise duty is chargeable on all tickets issued directly by the airlines or through their agents for the international journey starting/originating from anywhere 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.
-www.brecorder.com
According to the FBR directive, Pakistani diplomats are citizens of Pakistan and are diplomats only when in a foreign country. Thus the subject exemption of FED on international air travel notified vide SRO 778(I)/2006 is available only to foreign diplomats.
Under SRO 778(I)/2006, the federal government has exempted excise duty chargeable on the services of travel by air on international journey from Pakistan provided or rendered to the persons including Hajj passengers, diplomats, supernumerary crew and passengers having arrived in Pakistan from abroad on tickets issued outside Pakistan and are embarking only for return journey from Pakistan.
With effect from August 1, 2006, all airlines and aircraft operators are charging excise duty on tickets issued to passengers embarking on international air journey originating/starting from Pakistan. The excise duty is chargeable on all tickets issued directly by the airlines or through their agents for the international journey starting/originating from anywhere 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.
-www.brecorder.com
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