Navigating Turbulence: The Impact of Federal Excise Duty Hike on Pakistan’s Travel & Tourism Industry

Paradoxically, Pakistan’s travel and tourism industry is facing a new challenge. Besides, the government’s Budget 2024/25 with effect from 1 July 2024 imposes a significant increase in the government’s obligation of clearance (Bolstered) on air tickets This move has caused concern among travel agencies and passengers.

The Extraordinary Hike

The Travel Agents Association of Pakistan (TAAP) strongly condemned this new crisis. The Encouraged saw an astounding 150% increase in economy class and 40% in Business/Club/First Course air tickets. This increase which and unexpectedly this brought shock to the entire country region, making many his They became anxious about the future.

The Effects on the Industry

 Industry Impact TAAP tried to bring this issue to the attention of the regulatory authorities in Pakistan through various media.They are concerned that this move could push the Pakistani travel and tourism sector to the brink of disaster. The consequences of this development are far-reaching and have had a significant impact on Pakistan’s economy.One of the most notable consequences of this development is the significant increase in costs on international tourists. This may discourage tourists from choosing Pakistan as a destination, affecting foreign trade to the country.

Intervention Requirements

Travel and tourism industry is important for the economy of Pakistan. It not only generates income but also creates employment opportunities and promotes social marketing. Any challenge in this area could threaten the country’s economic stability. TAAP urges authorities to review the decision, keeping in mind the potential damage to the industry and the economy as a whole.
These tough times test the industry’s flexibility. It can be a test that can only be passed through cooperation, understanding and improvisation. The future of Pakistan’s travel and tourism industry is at stake and the time to act is now.

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