Big relief for travellers as airfares for business class decline

After a decrease in taxes on international air tickets for business class, the airfares for the United States of America (USA), Canada, and South America were reduced by Rs50,000, reported 24NewsHD TV channel on Monday.

According to details, passengers will avail a discount of Rs40,000 on a ticket of business class for Europe, the United Kingdom, Australia, Japan, Russia and Hong Kong.

The travellers can avail a concession of Rs25,000 on tickets of business class for the United Arab Emirates (UAE), Saudi Arabia, and other destinations.

The discount is implemented with effect from July 1, 2026.

Earlier, on June 13, 2026, the federal government proposed a reduction in Federal Excise Duty (FED) on business class international air travel through the Finance Bill 2026-27.

Under the proposed changes, FED on business class tickets for North, Central and South America will be reduced to Rs50,000 from Rs350,000.

For travel to the Middle East and Africa, the duty has been proposed at Rs25,000, down from Rs105,000.

Business class tickets to Europe will be subject to FED of Rs40,000 instead of Rs210,000.

The same rate will apply to travel to the Far East and Australia, where the duty has also been reduced to Rs40,000 from Rs210,000.

Reporter: Saeed Ahmad