Railways hike AC fares, freight rates marginally

Passengers travelling in air-conditioned train coaches will have to pay more from Monday. Freight tariffs will also go up marginally and so will the cost of food items sold at railway stations.

Passengers travelling in air-conditioned train coaches will have to pay more from Monday. Freight tariffs will also go up marginally and so will the cost of food items sold at railway stations.

The decision to impose service tax on high-end passenger classes, leading to a nearly 4% hike in the fares of all AC classes, was taken in a meeting between railways minister CP Joshi and finance minister P Chidambaram.

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Service tax would also be levied on freight and auxiliary services, an official stated.