Marco Economics

A GROUP PROJECT BY:

MOTHARMA SUBHANA ISLAM
BEGUM MAHNOOR ATIF
KHATOON FATIMA BATOOL
M MOIZ ASHIQ
M USMAN SHAKEEL
Effect of taxation on aviation industry in
Pakistan:
History:

 Income tax ordinance 2001:

 Sales tax act 1990:
 Major taxes:
 Domestic airlines and tax system:
Purpose/Objective of project:
 The purpose of your project on the tax system in the aviation industry in Pakistan
may be to explore the current tax system and regulations related to the aviation
industry in Pakistan.
 We also want to consider the impact of these taxes on the overall competitiveness
of the aviation industry in Pakistan. For example, you could investigate how the
tax system affect Our project could also explore the effectiveness of the tax
system in generating revenue for the government and supporting the development
of the aviation industry in Pakistan.
 Overall, the purpose of your project on tax system in the aviation industry in
Pakistan is to gain a deeper understanding of the current tax landscape in the
country and its impact on the aviation industry. This knowledge can help inform
policymakers and stakeholders in the industry to make informed decisions about
tax policy and regulationsts airline ticket prices and the demand for air travel in
the country.
Impacts of high taxes on aviation
industry in Pakistan:
 Potential impacts:
 Reduced business investment:
 Reduced consumer spending:
 Increased inflation:
 Increased tax evasion:
 Reduced foreign investment:
 Impacts on aviation industry: -
 Increased operating costs for airlines:
 Higher ticket prices for passengers:
 Reduced economic growth:
 Limited connectivity:
High tax rates on the aviation industry
in Pakistan can have several
implications for the broader economy,
including:
 Reduced tourism:

 Reduced trade:

 Job losses:

 Reduced competitiveness:

 Reduced employment opportunities:

 Reduced foreign investment:

 Reduced government revenue:

Taxation International comparison:
 Various forms of taxation impact the success and growth of the aviation industry.
The demand for air travel is highly sensitive to changes in prices. Inefficient and
burdensome tax measures that increase the cost of air travel will have a negative
effect on demand.
 Compare taxation on aviation industry in Pakistan and internationally:
 Aeronautical revenue consists of:
 Landing & Parking
 Aerobridge Charges
 Aircraft Power Supply System
 Route Navigation (en-route charges)
 Passenger Services (Embarkation fee)
Taxes of each countries:
Most Expensive Airfare Taxes

 We rank the five most expensive out of the most popular destinations based on the

absolute value of the taxes imposed on American travelers. All of the following

countries will see visitors paying a minimum of $140 in total taxes

Policy recommendations to decrease the
effect of taxation on aviation industry in
Pakistan:
 Reduce taxes on aviation fuel:
 Provide tax incentives for airlines:
 Review airport charges:
 Encourage foreign investment:
 Promote public-private partnerships:
 Collaborate with other countries:
Conclusion: