Indians to pay more for air tickets, but not from Jan 1

The government would not impose the 2% levy on domestic and international air tickets from January 1^st. The Draft Aviation Policy is expected to go for Cabinet approval only around mid-January.

The Ministry is currently preparing the draft note for the Cabinet. It must be ready by December 25^th. It would be sent for inter-ministerial comments only after that.

"As per procedure, various ministries concerned including Finance, Home, Defence, Law, MEA among others will be given 15 days time for their comments," they said.

"In all likelihood, the draft note will be sent to the Cabinet for its approval around January 15 next year," they said.

"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 under...the Aircraft Act 1934. The RCF levy will be applied on all routes other than Cat IIA routes and RCS routes," according to the draft policy.

The government would gain Rs. 1,500 Crore more annually from the levy.

Image credit: Indiatimes