Income Tax Ordinance 2001: advance tax on domestic, international air tickets

KARACHI: Passengers traveling through domestic or international airlines are required to pay certain amount of advance tax on purchase of air tickets.

According to Income Tax Ordinance, 2001 issued by Federal Board of Revenue (FBR) passengers of domestic and international destinations are required to pay advance tax under Section 236B and Section 236L.

Section 236B: Advance tax on purchase of air ticket.

Sub-Section (1): There shall be collected advance tax at the rate specified in Division IX of Part IV of the First Schedule, on the purchase of gross amount of domestic air ticket:

(The rate of tax to be deducted under section 236B shall be 5 percent of the gross amount of air ticket.)

“Provided that this section shall not apply to routes of Baluchistan coastal belt, Azad Jammu and Kashmir, Federally Administered Tribal Areas, Gilgit-Baltistan and Chitral.”

Sub-Section (2): The airline issuing air ticket shall charge advance tax under sub-section (1) in the manner air ticket charges are charged.

Sub-Section (2A): The mode, manner and time of collection shall be as may be prescribed.

Sub-Section (3): The advance tax collected under sub-section (1) shall be adjustable.

Section 236L: Advance tax on purchase of international air ticket

Sub-Section (1): Every airline, issuing ticket for journey originating from Pakistan, shall collect advance tax at the rates specified in Division XX of Part IV of the First Schedule, on the gross amount of international air tickets issued to passengers booking one-way or return, from Pakistan.

 

01 First/Executive Class Rs16,000 per person
02 Other excluding Economy Rs12,000 per person
03 Economy 0

 

Sub-Section (2): The airline issuing air ticket shall collect or charge advance tax under sub-section (1) in the manner air ticket charges are collected or charged, either manually or electronically.

Sub-Section (3): The mode, manner and time of collection under sub-section (1) and time of collection shall be as may be prescribed.

Sub-Section (4): The advance tax collected under sub-section (1) shall be adjustable.

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