Pilots’ tax burden

Published July 2, 2026 Updated July 2, 2026 07:56am

PAKISTANI airline pilots are currently subjected to a disproportionately high tax burden on their salaries, with some even paying Super Tax in addition to regular income tax, both deducted at source. This situation warrants an urgent review.

The nature of a pilot’s profession is uniquely demanding. It involves high operational risk, strict and continuous medical fitness requirements, irregular working hours, persistent fatigue due to jet lag, and extended periods away from family. Even minor health issues can result in temporary or permanent grounding, directly affecting income. Moreover, unlike many other professions, the majority of airline pilots today do not have pension benefits upon retirement or permanent medical unfitness, making long-term financial planning entirely their own responsibility. In this context, excessive taxation appears inequitable.

Compared to international practices, Pakistan’s pilot taxation rates are among the highest. In many countries, effective tax rates range 15-18 per cent, while some jurisdictions impose 25-30pc. In contrast, several Middle Eastern carriers, such as Emirates, Qatar Airways and Etihad Airways, offer tax-free salary structures, making them far more attractive for skilled professionals.

As a result, Pakistan is witnessing a steady outflow of its most experienced pilots, many of whom are leaving national airlines to join foreign carriers offering better financial incentives. This brain drain is particularly concerning, given that experienced pilots are a critical asset, and are in high demand globally.

The total number of pilots in Pakistani airlines is relatively small, and the revenue generated through such heavy taxation is unlikely to be substantial. However, the psychological and professional impact on pilots is significant. Aviation safety depends heavily on the mental focus and wellbeing of cockpit crew, and financial stress is an avoidable distraction.

Therefore, the taxation structure must be rationalised, with rates adjusted to more logical and sustainable levels, and appropriate relief extended to the pilots.

Wg-Cdr (retd) Arif Majeed
Karachi

Published in Dawn, July 2nd, 2026