The Federal Board of Revenue (FBR) has started serving notices on private and foreign airlines for the recovery of unpaid Federal Excise Duty (FED), which totals some Rs 2.3 billion deducted from international travellers.
FED rates are fixed at Rs 3,840 for economy class and Rs 6840 for club class and are applicable on all international air tickets issued from Pakistan. However, a number of foreign airlines are reported to have issued tickets from Pakistan to their hubs and collecting applicable FED only for this travel. Tickets for the remaining part of the travel to other destinations in the world were being issued from their hubs. As a result, the Large Taxpayers Unit (LTU) is analysing records of certain private and foreign airlines to ascertain the veracity of information.
LTU Karachi has started issuing notices under sections 14 and 45 of FED Act of 2005 for the recovery of pending dues.