President Asif Ali Zardari has signed the Finance Bill 2024, officially approving the federal budget for 2024-25. A signed copy of the Finance Bill will be sent to Parliament, with the new federal budget set to take effect from July 1.
On June 28, the National Assembly passed the federal budget amidst opposition protests. The session, chaired by Speaker Ayaz Sadiq, approved a budget worth Rs18.877 trillion. However, the opposition walked out after being denied the opportunity to voice their objections during the financial bill’s passage.
Despite the opposition’s protests, the assembly approved provisions to increase tax rates on international air travel tickets. From July 1, passengers in economy and economy plus classes will face an additional tax of Rs12,500 on international tickets.
The tax hikes are more substantial for travelers in business, club, and first-class. The tax on tickets for travel to North, Central, and South America has been increased to Rs350,000. For travel to the USA and Canada, the tax on business and club class tickets has risen to Rs100,000.
Travelers to the Middle East and Africa will face an additional tax of Rs30,000 on business, first, and club class tickets. A tax of Rs210,000 will be levied on business, first, and club class tickets for air travel to Europe, as well as to the Far East, Australia, and New Zealand.
The budget’s approval marks a significant step in the government’s fiscal plan, despite the contention and walkout from opposition members who felt their concerns were not addressed.
