Islamabad: Pakistani workers aspiring to work in Gulf countries will now face an additional financial burden. The federal government has introduced a new tax targeting those traveling from Pakistan to Gulf nations such as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, and Iraq. This decision is expected to impact a large number of Pakistanis seeking employment in these countries.
Details of the Excise Duty
The Federal Board of Revenue (FBR) has issued a Statutory Regulatory Order (SRO) imposing a PKR 5,000 excise duty on airline tickets for workers traveling to Gulf countries. This duty applies specifically to individuals traveling on verified labor visas. The tax is a fixed amount of PKR 5,000 per ticket.
According to the FBR, this tax will be collected from those traveling on visas verified by the Bureau of Immigration and Overseas Employment. The government aims to increase revenue through this measure, though it will place an additional financial strain on thousands of Pakistani workers headed to the Gulf.
Economic Ties with Gulf Countries
A significant number of Pakistani workers travel to Gulf countries for employment. Saudi Arabia, the United Arab Emirates, and Kuwait are among the top destinations, hosting millions of Pakistanis employed in various sectors. These workers not only support their families but also contribute to Pakistan’s economy through remittances. The billions of dollars sent back annually by these workers play a critical role in sustaining Pakistan's economy.
Challenges for Workers Due to the New Tax
This new tax could pose further challenges for Pakistani workers already grappling with economic hardship and unemployment. The additional PKR 5,000 duty on airline tickets could be a substantial burden, particularly for those already struggling financially. Workers bound for Gulf countries have expressed disappointment over the decision.
Government’s Position
Government sources suggest that the tax is intended to generate additional revenue for the national treasury, which can be used for various development projects and public services. However, this decision could be tough on workers and their families.
Public Reaction and Potential Impacts
The public reaction in Pakistan has been largely negative, with many criticizing the decision and urging the government to reconsider the tax to avoid further burdening the working class. Labor unions and social organizations have also voiced their opposition to the move.
Conclusion
Employment opportunities in Gulf countries are crucial for Pakistani workers, not only improving their lives but also strengthening the national economy. The introduction of this new tax on airline tickets could complicate matters for these workers. The government should carefully consider the implications of this decision and work towards creating policies that ease the burden on the labor force while also maintaining economic stability.
As the effects of this new excise duty unfold, it remains to be seen whether the government will reconsider its decision. The outcome will be significant for the working class, with potential long-term impacts.