Dear Members, السلام عليكم
The following letter has been sent in newspapers a couple of days back, along with the relevant Government quarters.
Quote:
TAX/SUPER TAX ON PILOTS
Pakistani airline pilots are currently subjected to a disproportionately high tax burden on their salaries, with some even paying “Super Tax” in addition to regular income tax, both deducted at source. This situation warrants urgent review.
The nature of a pilot’s profession is uniquely demanding. It involves high operational risk, strict and continuous medical fitness requirements, irregular working hours, persistent fatigue due to jet lag, and extended periods away from family. Even minor health issues can result in temporary or permanent grounding, directly affecting income. Moreover, unlike many other professions, the majority of airline pilots today do not have pension benefits upon retirement or permanent medical unfitness, making long-term financial planning entirely their own responsibility.
In this context, excessive taxation appears inequitable. Pilots must manage significant financial commitments, including children’s education, healthcare expenses, and post-retirement security. Meeting these obligations under the current taxation regime is increasingly difficult.
From an international standpoint, Pakistan’s pilot taxation rates are among the highest. In many countries, effective tax rates range between 15-18%, while some jurisdictions impose 25-30%. In contrast, several Middle Eastern carriers, such as Emirates, Qatar Airways, and Etihad Airways, offer tax-free salary structures, making them far more attractive for skilled professionals.
As a result, Pakistan is witnessing a steady outflow of its most experienced pilots, many of whom are leaving national airlines to join foreign carriers offering better financial incentives and working conditions. This brain drain is particularly concerning, given that experienced pilots are a critical asset and are in high demand globally. Losing such expertise not only weakens the domestic aviation sector but also raises concerns about long-term operational capacity and safety standards.
It is also worth noting that the total number of pilots in Pakistani airlines is relatively small, and the revenue generated through such heavy taxation is unlikely to be substantial. However, the psychological and professional impact on pilots is significant. Aviation safety depends heavily on the mental focus and well-being of cockpit crew, and financial stress is an avoidable distraction.
Therefore, this matter deserves serious and immediate consideration. The taxation structure must be rationalized, with rates adjusted to more logical and sustainable levels, and appropriate relief extended to Pakistani pilots. Ensuring that pilots operate in an environment free from undue financial anxiety is essential for maintaining flight safety. Pakistan cannot afford further setbacks—particularly in light of past consequences, such as the prolonged restrictions on its aviation sector in Europe following the Airbus A-320 accident in Karachi.
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This is for your information only.
With Best Regards,
Capt (Retd) Arif Majeed
GENERAL SECRETARY