FM proposes additional service charge on domestic and international air travel
28th Feb 2011 Air travel is likely to become more costly from April 1, 2011. In the Union Budget 2011-12 presented in the Parliament today by the Finance Minister, Pranab Mukherjee, he proposed to an increase in Service Tax in various categories including air travel. Mukherjee has proposed an additional service charge of Rs 50 on domestic air travel by Economy Class and Rs 250 on the international travel by the same class. Similarly, a uniform 10 per cent service charge will be levied on higher class air travel in the domestic sector.
Mukherjee said that the domestic air travel on higher classes would be taxed at the standard rate of ten per cent to bring it on par with journeys by higher classes on international air travel.
