Aviation

Going abroad could be cheaper than travelling in India

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Travelling in India can sometimes surprisingly be more expensive than travelling abroad, especially if you are going to Asian destinations says a Mint report.

It says that that embedded indirect taxes are often to blame for the same. Take travelling by rail for example. Indian Railways’s mantra ‘luxury comes with a higher price’ results in travel by first class and air-conditioned compartments more expensive from October 2012 as a result of the higher service tax on the same. This adds nearly 4% to your ticket costs. , Air travel is even more complicated with additional elements such as fuel surcharge, passenger handling charges, development fee, and others. The net service tax effect is about 5%.

If you used a tour operator for even booking hotels, you will have to pay a tax of 12.36% on 10% of the total cost resulting in an additional cost of 1.236%. In all other cases, the tour operator shall have to pay service tax on 40% of the gross value to the traveller resulting in an extra cost of 4.944% for the traveller. Similarly service tax will make you pay another 5% when you take a radio taxi. All together, these costs add up to make your holiday more expensive.

Read more at Mint

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