Pakistan expats in UAE upset as airfares surge on taxes

The newly announced 2014-15 budget has brought good news for Pakistan’s public sector employees but not for its overseas citizens as foreign travel to and from Pakistan will become dearer due to new excise duties.

While announcing the new budget, Federal Finance Minister Senator Ishaq Dar said the Excise Duty on international travel has been increased between 30 and 46 per cent by the government in the new budget, putting a huge burden on the pockets of the overseas Pakistanis.

Under the new budget, Federal Excise Duty on Economy Class traveller has been increased from Rs3,840 (Dh143) to Rs5,000 (Dh186), an increase of Rs1,160 (Dh43) – or 30 per cent – per ticket. While Business Class and First Class travellers will now have to pay Rs10,000 (Dh373) duty on their air tickets compared to Rs6,840 (Dh255) earlier – an increase of Rs3,160 (Dh118), or 46 per cent.

The news disappointed Pakistanis residing in the UAE, asking the government to withdraw the duty hike.

“The hike is unjustified and no government ever took overseas Pakistanis interest seriously. This government is not exception either. The government knows the important role played by overseas Pakistanis for their contribution in foreign exchange reserves. It’s the remittances sent by Pakistanis in the UAE and other countries around the globe that help government to meet its debt obligations; but they never pay heed to our needs and always burden us with new taxes or duties,” says Waseem Ansari, a UAE resident for over 17 years.

Another resident T. Usman said the worst part is increase in excise duty for the Economy Class as most of the Pakistani travellers from the UAE in this category are from the middle class and the government should withdraw the duty.

“The PML-N government is not willing to give us (overseas Pakistanis) voting rights but is quick to impose new duties,” Usman said.

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