THE recent levy of federal excise duty (FED) on business class international air travel can be justified in view of the ongoing economic crisis. However, there are two points that need consideration.

Whether an item is a `luxury` or not depends on the consumer and her/his circumstances. Hence, while business class travel may be a luxury for a young healthy adult, it is a necessity, particularly over long distances, for an elderly person or for a person of any age having a specified medical condition. As such, older persons above a certain age and persons having specified medical conditions should be exempted from this FED. Levying the FED on them means levyinga taxon a necessity.

Besides, the impact of FED on Pakistan International Airlines (PIA) should be carefully evaluated. PIA, which has already been financially strained, stands to lose a lot of revenue it earns from its business class traffic, particularly on long-haul flights between Pakistan and North America, which many prefer as these are the only non-stop flights available.

The levy of the FED on business class travel will encourage people to travel economy class on very short flights to the Gulf destinations, such as Qatar, Dubai and Abu Dhabi, and travel business class from there to North America and Europe. There are several airlines in the Gulf which would be making money at the expense of PIA.

The government should take note of the two points and consider removing the FED burden from the elderly, those with a medical condition, and all those travelling business class with PIA.

Ghazy Mujahid Mississauga, Canada