New Delhi: Domestic air travel will cost more from the next financial year with the government raising service tax on it by Rs 50 and Rs 250 for domestic and international journeys respectively.
Presenting the 2011-12 budget in the Lok Sabha, Finance Minister Pranab Mukherjee also proposed to tax travel by higher classes on the domestic sector at the standard rate of 10 per cent.
The hike in service tax on air travel would be effective from April one.
From then on, the tax on economy class domestic travel would stand at Rs 150 instead of the current Rs 100 and Rs 750, as against Rs 500, for international travel.
Domestic travel on Business or high class would attract a flat service tax of 10 per cent of the fare. This would bring domestic air travel on higher classes on par with international journeys by the same classes, Mukherjee said.
However, there was relief to the Air India as the Finance Minister made a budgetary support of Rs 1,200 crore to the ailing national carrier as additional equity infusion.
This would be the third tranche of equity for Air India, which received Rs 800 crore and Rs 1,200 crore respectively in the 2009-10 and 2010-11 budgets.
28/02/11 Economic Times
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment