Pakistan-UAE flights: Airfares rise due to new taxes
Pakistan has implemented a set federal excise duty of Rs5,000 (Dh66) on airfares for laborers heading to the UAE and other Gulf Cooperation Council (GCC) nations, leading to a rise in flight expenses for these workers.
The Federal Board of Revenue of Pakistan made this announcement in a notification issued last week.
The announcement mentioned that passengers with a labor visa in their passports, verified by the Protector of Emigrants, will be charged Rs5,000 per ticket when traveling from Pakistan to GCC countries.
The air corridor between the UAE and Pakistan is heavily frequented because of the high population of South Asian expatriates in the Emirates. Airfares between UAE and Pakistan typically tend to be high because of limited seat availability. Flights from Pakistani cities to the UAE are usually more expensive than flights from nearby countries that take the same amount of time.
This additional tax will increase the financial burden on low-income workers, who represent the majority of immigrants from South Asia.
This adds more weight to workers such as myself. While it may seem insignificant in terms of UAE dirhams, Rs5,000 proves to be a considerable sum for impoverished laborers migrating from rural regions of Pakistan in hopes of securing a more prosperous economic outlook. These workers in blue-collar jobs are also the primary contributors of financial support sent to Pakistan. Ali Ahmed, who arrived in the UAE as a laborer and now works as an assistant at a private company, stated that the government needs to reconsider such decisions.
At present, there are five airlines from Pakistan and four from the United Arab Emirates that run flights between the two nations.
The Pakistan government's choice to impose a standard federal excise duty coincided with the decision to raise the duty on Business Class flights to UAE, GCC, and other Middle Eastern nations by Rs30,000 to Rs105,000 starting July 1, 2024.
In recent years, many individuals have left the South Asian country in large numbers because of few job opportunities, steep inflation, and unstable politics, compelling them to seek employment elsewhere.
The UAE, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait are all part of the GCC countries. This area is home to the largest Pakistani expatriate population.
From 2023 to 2024, a total of 862,625 individuals from the South Asian community traveled abroad for work, with the GCC countries being the most popular destinations.
According to the data published in the Pakistan Economic Survey 2023-24, Saudi Arabia attracted the highest number of Pakistanis with 426,951 individuals seeking employment opportunities in the kingdom.
Approximately 1.7 million people from South Asia are residing and employed in the UAE. In the years 2023-24, a total of 230,000 Pakistanis relocated to the UAE in search of better opportunities.
Oman hired 60,046 Pakistani workers, making up 7% of the total workforce, while Qatar provided employment opportunities for 55,112 people. Bahrain accommodated 13,345 workers while Malaysia hosted 20,905 workers.
Until April 2024, official procedures have been used by over 13.53 million Pakistanis to go abroad for work in more than 50 countries. Approximately 96% of Pakistani workers registered for jobs in Gulf Cooperation Council nations, particularly Saudi Arabia and the UAE. They help boost Pakistan's economy by sending remittances, which are the main source of foreign currency besides exports.
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