Islamabad, January 15, 2026 – The Federal Board of Revenue (FBR) reported that Federal Excise Duty (FED) collections saw significant growth in fiscal year 2024-25, with air travel emerging as a key contributor to revenue gains.
According to FBR data, FED on services for inland air travel surged by 110%, while FED on overall air travel increased by 103% compared to the previous fiscal year. This highlights the growing contribution of the aviation sector to federal tax revenues.
Other sectors also recorded notable performance. Cement saw a remarkable growth of over 100%, while motor cars and fertilizers registered growth rates of 63.6% and 19%, respectively. Certain items, like cigarettes and aerated beverages, experienced slight declines, but the overall FED collection demonstrated a strong 32.8% year-on-year growth, reaching Rs766.6 billion net for FY25.
Revenue experts said the significant increase in FED from air travel reflects both rising passenger traffic and higher service charges in Pakistan’s aviation industry. Analysts noted that the FED on air travel not only contributes directly to government revenue but also indicates broader economic activity in domestic transport and tourism.
FBR officials highlighted that air travel and related services have become a consistent high-growth revenue stream, complementing traditional sectors like cement, sugar, and motor vehicles. They emphasized that continuous monitoring and effective collection mechanisms will help maintain this positive trend in future fiscal years.
The FBR’s report underscores the importance of modern service sectors, particularly air travel, in driving federal tax growth, signaling a shift in revenue patterns beyond conventional excise items.