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

Large projects again?
Updated 03 Jun, 2024

Large projects again?

Government must focus on debt sustainability by curtailing its spending and mobilising more resources.
Local power
03 Jun, 2024

Local power

A SIGNIFICANT policy paper was recently debated at an HRCP gathering, calling for the constitutional protection of...
Child-friendly courts
03 Jun, 2024

Child-friendly courts

IN a country where the child rights debate has been a belated one, it is heartening to note that a recent Supreme...
Dutch courage
Updated 02 Jun, 2024

Dutch courage

ECP has been supported wholeheartedly in implementing twisted interpretations of democratic process by some willing collaborators in the legislature.
New World cricket
02 Jun, 2024

New World cricket

HAVING finished as semi-finalists and runners-up in the last two editions of the T20 World Cup in familiar ...
Dead on arrival?
02 Jun, 2024

Dead on arrival?

Whatever the motivations for Gaza peace plan, it is difficult to see the scheme succeeding.