Thursday October 06, 2022

FED collection at airports annoys PM

By our correspondents
July 03, 2022

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday took a strong notice of illegal collection of the Federal Excise Duty (FED) worth Rs50,000 from passengers at airports. The prime minister directed that the illegal order to collect FED at the airports should immediately be revoked and the practice of causing trouble to passengers should be discontinued immediately.

The PM said it should be investigated as to how the excise duty was collected from the passengers without the approval of the cabinet.

Shehbaz Sharif instructed the finance minister to hold an inquiry in this regard and take strict action under the law against those responsible for the illegal act. He said those who inflicted suffering on the passengers had no right to hold their posts.

The prime minister asked the finance minister that arrangements be made to return the money to passengers from whom FED was collected. Shehbaz Sharif called for immediate implementation of his orders and submission of report after action against the persons responsible.

Meanwhile, the Federal Board of Revenue (FBR) said that the federal excise duty is chargeable and collectible on club, business and first class air tickets under section 3 read with entry number 3(b)(ii) of Table-II of the First Schedule to the Federal Excise Act, 2005, according a FBR handout. Moreover, sub-rule (8) of rule 41A of the Federal Excise Rules, 2005 states that Federal Excise Duty shall be charged and collected at the time of issuing the international air ticket. In the light of rule 41A, the Federal Excise Duty is chargeable and collectable at the time of issuance of ticket, therefore, it is clarified that the enhanced rate of Federal Excise Duty at Rs50,000 (which was previously Rs10.000) is not applicable on the club, business and first class international air tickets that have already been issued before the first day of July, 2022.

Meanwhile, Pakistan Democratic Movement (PDM) President Maulana Fazlur Rehman was hospitalised at a local hospital here Saturday morning for treatment of his heart problems. The president of his own faction of Jamiat Ulema-e-Islam (JUI) has been feeling unwell for the last few days. Upon hearing about his health condition, Prime Minister Shehbaz Sharif asked him to come to Lahore for treatment.

Maulana reached Lahore in the morning and was brought to the hospital. Shehbaz Sharif visited the hospital to inquire after him and the ailing Maulana was also presented a bouquet from the prime minister.

Prime Minister Shehbaz Sharif directed the doctors to take all necessary tests of Maulana Fazlur Rehman and provided him with the best treatment. A board of doctors headed by Dr Aizaz Mand is taking care of Maulana Fazlur Rehman.

When contacted, the doctors refused to comment on his health condition. However, a doctor said Maulana has a history of heart ailments and has been admitted for routine checkup.

Sources in JUIF said Maualna Fazlur Rehman is suffering from gastric problems which caused some pain in his abdomen and chest.

Earlier, Punjab Chief Minister Hamza Shehbaz called on Prime Minister Shehbaz Sharif on Saturday.