Sunday, September 17, 2006

'Service tax on air travel hampering tourism'

New Delhi: Worried over the impact of imposition of service tax on air travel on tour and travel business, the Union Tourism and Civil Aviation Ministries will seek a review of the decision.
"Both me and Tourism Minister Ambika Soni will talk to the Finance Minister P Chidambaram and ask him to reconsider the decision to impose service tax on air travel," Civil Aviation Minister Praful Patel said reporters on the sidelines of an international conference of tour operators here.Service tax is now being charged on flying Business Class and First Class on any airline.
It is proving to be a big hurdle in increasing the tourist inflow and promoting the civil aviation industry. Hence, we will ask the Finance Minister to review the decision to impose service tax," Patel said.
16/09/06 PTI/Financial Express
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