Airfares for international flights are expected to soar in Pakistan from July 1 as the federal government has proposed taxes on them to generate revenue.

According to the amended Finance Bill, the decision was taken for the services provided or rendered in respect of travel by air of passengers embarking on an international journey from Pakistan.

The government has proposed a Rs12,000 tax on the economy and economy plus air tickets issued on or after July 1, 2024.

An additional tax of Rs100,000 would be levied on business class and club class tickets for travel to the United States and Canada.

Furthermore, for travel to Europe, the additional tax on business class and club class tickets would be Rs60,000 per ticket. A similar amount of tax has been proposed on business and club class tickets to New Zealand and Australia.

The government also proposed a Rs30,000 increase in taxes for business and club class tickets to destinations in the Middle East and Africa, including Dubai and Saudi Arabia.

This move by the government is aimed at generating additional revenue through the aviation sector. The increased tax burden is expected to significantly impact the travel plans and budgets of passengers booking premium cabin classes for international flights.