Travel Companies Bat for FDI in Railways, Tax Relief on Jet Fuel

NEW DEHI: Lowering of taxes on jet fuel, hotels and holiday packages are among the top demands of the travel industry, which has asked the government to initiate bold measures like FDI in Railways to promote tourism and travel in a big way.

"We look forward to some fundamental changes that will give the travel and tourism market a big boost. There is a pressing need to review taxes on air travel, which is probably the most heavily-taxed product in the country, where the tax component of airfare often exceeds the underlying price of that ticket," said Rakshit Desai, Managing Director (India) of travel management firm FCm Travel Solutions.

Sharat Dhall, President of travel portal Yatra.com, pleaded for moves to introduce foreign direct investment in Railways, saying it "will help infuse greater effectiveness and efficiency in India's dynamic tourism industry".

He also listed issues like relaxing of taxes on aviation turbine fuel (ATF) to "boost cheaper air travel" and sought a re-look at the service tax on holiday packages, saying the industry was "optimistic that the budget will include reforms which will help boost the tourism industry in India".

Supporting FDI in Railways, MakeMyTrip's co-founder and CEO Rajesh Magow also suggested 100 per cent FDI in the case of airlines. As the operating costs were "disproportionately high" for airlines, government should help by reducing fuel surcharge and rationalising airport charges.