The Indian budget 2011-12 has proposed to raise the service tax on air travel by Rs50 in the case of domestic air travel and Rs250 on international journeys by economy class. It also proposed to tax travel by higher classes on domestic sector at the standard rate of 10%. Indian airlines have already stated that they will be forced to pass on the hike to passengers. Shares in Jet Airways fell slightly on the news, while SpiceJet dropped 4.76% to close at Rs.38 and Kingfisher Airlines lost 1.56% to close at Rs.37.75 on the Bombay Stock Exchange yesterday.

This content is restricted to site members.

If you are an existing user, please login below.
New users may register below.

Existing Users Log In