Economy air travel may face service tax

The party for low-cost air travelling may soon be spoiled. The finance ministry is examining the possibilities of bringing economy air travellers under the service tax net.

This comes even as airline operators are finding it difficult to sustain the low-cost fares given the high rise in fuel costs. After taxing business class air travellers, the government is now eyeing the economy class travellers and may bring the service in tax ambit in the Budget 2007-08.

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2 Responses to “Economy air travel may face service tax”

  1. Smoky Says:

    Interesting to note these issues are more global than I first thought.

    Hang in there and keeping feeding the good stuff.



  2. Thai Says:

    Would this service tax really be a benefit, and if so, how and whom would it benefit? This is interesting information.

    Thank you,


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