Air travel has become more expensive, especially for those who are travelling in business class as government came up with new taxes in Budget 2024-25.
From July 1, there will be excise duty on business and club class air tickets for several countries. The excise duty on business and club class tickets to the United States of America USA, North America, Latin America, and Canada has been jacked up from Rs250,000 to Rs350,000.
For European countries, the duty has moved up by Rs60,000, now standing at Rs210,000, as compared to the previous Rs150,000.
New Taxes on Air tickets
| Region | New Excise Duty |
|---|---|
| USA, North America, Latin America, Canada | Rs350,000 |
| European countries | Rs210,000 |
| New Zealand and Australia | Rs210,000 |
| China, Malaysia, Indonesia | Rs210,000 |
| Saudi Arabia, UAE, Middle East, African countries | Rs105,000 |
Similarly, the duty on business and club class tickets for New Zealand and Australia has been increased by Rs60,000, now standing at Rs210,000.
The excise duty for air tickets to China, Malaysia, and Indonesia has also been raised to Rs210,000. Additionally, the duty for tickets to Saudi Arabia, UAE, the Middle East, and African countries has been increased by Rs30,000, now totaling Rs105,000.
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