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Domestic air travel to cost more
Monday, 28 February 2011, 22:34 IST
New Delhi:Domestic air travel will cost more from the next financial year with the government raising service tax on it by 
50 and 250 for domestic and international journeys respectively.
Presenting the 2011-12 budget in the Lok Sabha, Finance Minister Pranab Mukherjee also proposed to tax travel by higher classes on the domestic sector at the standard rate of 10 percent.
The hike in service tax on air travel would be effective from April one.
From then on, the tax on economy class domestic travel would stand at Rs 150 instead of the current Rs 100 and 750, as against 500, for international travel.
Domestic travel on Business or high class would attract a flat service tax of 10 percent of the fare.
Source: PTI
50 and 250 for domestic and international journeys respectively.
Presenting the 2011-12 budget in the Lok Sabha, Finance Minister Pranab Mukherjee also proposed to tax travel by higher classes on the domestic sector at the standard rate of 10 percent.
The hike in service tax on air travel would be effective from April one.
From then on, the tax on economy class domestic travel would stand at Rs 150 instead of the current Rs 100 and 750, as against 500, for international travel.
Domestic travel on Business or high class would attract a flat service tax of 10 percent of the fare.
Source: PTI