IATA requests that Pakistan reverse the recent increase in airfare taxes.

The federal government increased the FED for foreign travel in the 2024–2025 budget. The announcement states that the FED for economy and economy plus tickets has increased by fifteen hundred percent.

The IATA has urged to immediately reverse the implementation of a 150 percent levy on international aviation tickets in a letter to Pakistan’s finance ministry.

According to the organization, it is against international civil aviation norms and regulations to raise the ticket price without first gaining the trust of stakeholders.

According to the IATA’s letter, a tax increase has an impact on the operations of airlines and agencies. Calls have been made for the Pakistani government to reverse its intention to impose a hefty levy on airline tickets.

The Travel Agents Association of Pakistan (TAAP), which stated that the business is facing a serious problem as a result of the recent hike in air ticket charges, declared the increase to be unlawful on July 6.

Former chairman and executive committee member Nadeem Sharif underlined at a press conference held at their office that these actions might bring about the industry’s demise.

The chairman of the APJC, Muhammad Hanif Ranch, said that the government has broken the law with its conduct during the last five days. He deemed the tax hikes to be capricious and damaging to the travel and tourism industries.