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Centre Moots 2% Levy On Domestic+International Air Tickets

Oct. 30 Economy, Travel Comments

[New Delhi] Centre Moots 2% Levy On Air Tickets Which May Hike Air Fares Even Low Cost ATF
Government proposing 2 % levy on all domestic and international tickets to raise funds for boosting regional air connectivity.
The proposal, part of the elaborate and revised National Civil Aviation Policy, is to be implemented from January 2016.
Even as there are concerns that additional levy will push airfares higher, leading carriers IndiGo + SpiceJet said the move will help develop infrastructure for regional air connectivity which, in turn, will bring down the costs.
Coming out with the much-awaited draft policy, the Civil Aviation Ministry today proposed a raft of measures to bolster regional air connectivity, including by way of levying additional cess and providing viability gap funding.
For Regional Connectivity Scheme (RCS), the government plans to impose a 2 per cent levy on all tickets.
“RCF (Regional Connectivity Fund) will be funded by a levy of 2 per cent on all domestic and international tickets from January 1, 2016 onwards

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