The civil aviation ministry is said to have abandoned a proposal to levy a 2 per cent cess on tickets to fund increased regional connectivity, bringing cheer to passengers who won't have to worry about one more charge being added to fares.
The cess had been included in the draft civil aviation policy, which the government is in the process of finalising. The plan was to start imposing it from this fiscal itself.
"The cess plan is junked now, as the government does not want to burden the consumers with any fare hike," said a senior civil aviation ministry official who did not want to be identified. "As far as funding the regional connectivity plan is concerned, other modes are being discussed to fund it without charging consumers... One thing is clear — consumers will not be burdened directly."
The development comes as Railway Minister Suresh Prabhu kept train passenger fares unchanged in his budget on Thursday.
27/02/16 Mihir Mishra/Economic Times
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The cess had been included in the draft civil aviation policy, which the government is in the process of finalising. The plan was to start imposing it from this fiscal itself.
"The cess plan is junked now, as the government does not want to burden the consumers with any fare hike," said a senior civil aviation ministry official who did not want to be identified. "As far as funding the regional connectivity plan is concerned, other modes are being discussed to fund it without charging consumers... One thing is clear — consumers will not be burdened directly."
The development comes as Railway Minister Suresh Prabhu kept train passenger fares unchanged in his budget on Thursday.
27/02/16 Mihir Mishra/Economic Times
