Thursday, April 06, 2006

Finance Ministry calls Rs 500 air travel cess a bad idea

New Delhi: The finance ministry has opposed the civil aviation ministry’s proposal to levy a cess on air travellers to bridge the viability gap in the proposed Rs 25,000 crore non-metro airport projects. Commenting on a note moved by the aviation ministry, the department of economic affairs (DEA) of the finance ministry has said the cess was a bad idea as it would “unnecessarily increase” the cost of air travel.
A few weeks ago, the civil aviation ministry had proposed a cess at differential rates of Rs 500/ticket and Rs 600/ticket for domestic and international travel.The DEA has, however, said if at all such a levy was to be introduced, it should not exceed Rs 100 per ticket.
06/04/06 KG Narendranath/Financial Express
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