Air travel to become costlier

February 28th, 2011 - 2:57 pm ICT by IANS  

Pranab Mukherjee New Delhi, Feb 28 (IANS) Air travel is to become costlier with Finance Minister Pranab Mukherjee increasing service tax on air travel in the federal budget for 2011-12 Monday.Mukherjee said service tax levy would go up by Rs.50 on domestic travel while it would be increased by Rs.250 on international travel in economy class.

In July last year, the ministry had put a cap on service tax in case of domestic flights at 10 percent of the gross (total) value of the ticket, or Rs.100 per travel, whichever is less, and 10 percent of the gross value of the ticket, or Rs.500 on international travel by economy class.

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