Your flight tickets will get a little costlier from Thursday.
As a new service tax kicks in, air travel within the country will cost Rs 103 more and an international journey will cost Rs 515 more.
The service tax will be calculated at the rate of 10.3 per cent of the gross value of the tickets or Rs 103 whichever is less. The gross value of the ticket comprises the base fare, fuel surcharge and congestion charge.
Business class international travellers have been bearing this charge as ‘luxury charge’ since 2006. While the current tax structure may not pinch travellers, the trade industry fears it will increase in the future. “This charge will keep increasing every year,” said a travel agent, requesting anonymity.