The Federal Board of Revenue (FBR) has extended sales tax exemptions on the import or lease of aircraft and aircraft parts to all airline companies registered in Pakistan.

According to instructions issued by the FBR to its field formations on Monday, the exemption was extended through the addition of Serial No. 181A to the relevant schedule.

The FBR also restored sales tax exemptions on the import of ships flying the Pakistani flag. The exemption had been withdrawn in 2021. Sales tax relief has also been restored on the import of plant, machinery and other capital assets used for shipbuilding.

The tax authority said federal excise duty on club, business and first class air tickets had also been rationalized. The revised duty has been set at Rs. 50,000 for travel to North America, Rs. 25,000 for the Middle East, Rs. 40,000 for Europe and Rs. 40,000 for the Far East and Australia.

The FBR said the changes were aimed at addressing situations in which excise duty on premium air tickets could exceed the ticket price itself.