The Sindh government announced on Monday that it will impose stamp duty on air tickets, affecting domestic and international flights. The notification sets the duty at Rs50 per domestic ticket and Rs400 per international ticket.
Officials have directed six Pakistani and four foreign airlines to collect this duty on behalf of the provincial government, which will enhance the province’s revenue streams.
The idea of imposing stamp duty on air tickets was part of the provincial budget for 2024-25, which estimated duties of Rs250 for domestic and Rs1,000 for international tickets.
During the budget presentation, Sindh CM Murad Ali Shah proposed new taxes on air tickets, real estate, and businesses, highlighting the economic challenges faced by the province over the past five years.
According to the budget bill, the government has also made several changes to the Stamp Act and the GST on Services Act. Additionally, the provincial government proposed a three per cent tax on the assessed value of lands, shops, and residential flats in the real estate market. The amendment specifies that the tax rate will be “two per cent of the valuation table or declared value recorded in the instrument, whichever is higher,” particularly affecting transactions with Real Estate Investment Trusts.
