Federal government has cut taxes on international business class air tickets by up to Rs50,000, offering relief to premium travelers while leaving economy class passengers largely unaffected.
The revised tax rates took effect on July 1, 2026, as part of travel related measures announced in the 2026-27 federal budget. The reduction applies only to business class tickets and is aimed at easing the financial burden of overseas travel for premium passengers.
Under the new structure, business class travelers flying to the United States, Canada, and South America will receive the highest relief, with tax cuts of up to Rs50,000 per ticket.
Passengers flying business class to Europe, the United Kingdom, Australia, Japan, Russia, and Hong Kong will see tax reductions of up to Rs40,000, making long haul premium travel comparatively cheaper.
Business class travelers heading to the UAE, Saudi Arabia, and other regional destinations will benefit from tax cuts of up to Rs25,000 on their tickets.
Officials say the measure is expected to lower the overall cost of international business class travel and provide direct financial relief to thousands of passengers, particularly frequent business travelers and overseas Pakistanis.
The reduction does not extend to economy class fares, which make up the bulk of air travel in the country.
