New Delhi, April 29 (Inditop.com) Finance Minister Pranab Mukherjee said the impact of service tax on domestic and international air travel in economy class would be minimal and amount to no more than Rs.100 and Rs.500, respectively, at the highest level.
“Let me tell you, the impact is not all that high,” Mukherjee said in his final reply to the debate on the Finance Bill for the current fiscal, adding that he was exempting from service tax the air travel to and from the north-eastern states.
In the budget proposals presented by the finance minister Feb 26, air travel on economy class was also sought to be brought into the service tax net. The government was already imposing such a tax on business and first class air travel.
