ISLAMABAD: The Federal Board of Revenue (FBR) has proposed a standard rate of 16 percent Federal Excise Duty (FED) on chartered flights used by the elite class in upcoming budget (2014-15). As per details, chartered flights are used by the upper class, executives of multinationals and top corporate entities.
Due to ambiguity in law, despite high value of chartered flights, the FED paid on such flights is very low. Ministry of Finance has received a budget proposal of the Federal Board of Revenue to charge FED on chartered flights at standard rate on full amount charged.
It is to be noted that the FBR budgetary proposal, if implemented, would have no impact on the general masses and would also ensure maximum collection of the FED from the rich class using such chartered flights to go aboard. The FBR has estimated Rs500 million to Rs750 million revenue from the measure from next fiscal. The FBR has proposed amendment to the relevant Schedule of the Federal Excise Act 2005 to collect standard rate of the FED on chartered flights.