Air travel service tax for Q1 at Rs.231.5 crore

August 10th, 2011 - 7:14 pm ICT by IANS  

New Delhi, Aug 10 (IANS) A total of Rs.231.5 crore was collected as service tax from passengers travelling on airlines, including travel agents, in the first quarter of the current fiscal.

“In the current financial year the revenue collected during the first quarter (April-June, 2011) was Rs.231.5 crore,” Civil Aviation Minister Vayalar Ravi informed the Lok Sabha.

According to Ravi, the service tax collected from the passengers has been on a steady upward climb with revenues collection of Rs.890.9 crore in 2010-11 being 33.24 percent higher than the revenue of Rs.668.6 crore collected in 2009-10.

The minister further said that the sector required a continuous policy readjustment to ensure faster and inclusive growth.

“The government has been constantly responding to the changing scenario and formulating sector specific policies to facilitate and enable growth of the sector,” the minister said answering another query by the house member.

The federal budget 2011-12 raised the service tax on air travel by Rs.50 for travelling on domestic routes and Rs.250 on international routes by economy class.

The budget further kept the service tax at the standard rate of 10 percent, which is also charged on international premium class air travel for domestic business and first class passengers.

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