GST hike makes premium air travel expensive
GST hike makes premium air travel expensive
Amidst the Central Govt’s initiation of the GST reforms and with the levy on non-economy air travel from 12% to 18%, experts believe, it will drive up fares for passengers travelling in premium economy (PE), business and first class.
Preceding to Council’s announcement of the new tax regime, two major airlines requested for GST on all classes to be 5%.
Even as the rate for economy travel stays invariant to keep airfares affordable for mass travellers, the steep GST on upper classes has triggered concern among airlines and online travel agents.
According to Ajay Prakash, Former President of Travel Agents Federation of India (TAFI) the new GST rate has come at a time when the Indian aviation market is reeling through a “very sensitive phase.
News Edit KV Raman
