Cost of all types of air tickets to rise

Highlights

• Excise duty on local air tickets will increase from Tk500 to Tk700
• For SAARC countries, the duty will double from Tk500 to Tk1,000
• International flights costs will rise from Tk3,000 to Tk4,000
• NBR aims to collect at least an additional Tk300 crore from this increase
• Truncated VAT rates on 43 types of goods and services will be abolished, standard rate of 15% to be applied
• Price and supplementary duty on tobacco products will be raised

The cost of air tickets for domestic, SAARC countries, and other international destinations is set to rise. 

The National Board of Revenue (NBR) is planning to increase the existing excise duty on air tickets.

According to NBR sources, the current excise duty on local air tickets will increase from Tk500 to Tk700. 

For SAARC countries, the duty will double from Tk500 to Tk1,000, while for international flights, it will rise from Tk3,000 to Tk4,000.

Sources also said the NBR might issue an order in this regard by Sunday. 

Once implemented, air travelers will face an additional financial burden.

The NBR aims to collect at least an additional Tk300 crore from this increase, sources added.

Additionally, the price and supplementary duty on tobacco products will be raised, targeting an extra revenue of nearly Tk4,000 crore over the remaining six months of the fiscal year.

Furthermore, the truncated VAT rates on 43 types of goods and services will be abolished, and a standard rate of 15% will be applied. 

A senior NBR official told The Business Standard that the move is being made to meet the conditions set by the IMF and generate an additional Tk12,000 crore in revenue for the current fiscal year.