The government introduced new taxes for the employees of Pakistan International Airlines (PIA) and there is no discrimination between regular and retired employees. This is sheer injustice, for retired employees cannot afford to bear the burden of these taxes. As per the Finance Act-2014 the government increased Federal Excise Duty (FED) rate on services provided or rendered in respect of travel within Pakistan by air as Rs 2500 for long routes, Rs 1250 on short routes, and Rs 500 on socio-economic routes, while 4 percent tax is also levied on international flights.

The national airline gives its employees 32 percent of their total salary as pension, but the formula it applies calculated this on their basic pays which is unjust. As per rules, all other governmental organizations give their retired employees 50% of their salaries as pension. This was also in practice at PIA till 2003. Another option is that the government and the airline should either increase the pensions or spare the retired employees from tax.


May 9