Prime Minister Narendra Modi on Friday dismissed reports doing the rounds online, claiming that the government was planning to impose a tax/cess/surcharge on foreign travel, calling them “false”.
In a post on X, he wrote: “This is completely false. There is not an iota of truth in it.” He added: “Imposing such restrictions on foreign travel is out of the question. We remain committed to improving ‘Easy of Doing Business’ and ‘Easy of Living’ for our people.”
His remarks came after a CNBC TV-18 report, citing sources, said that the proposal to levy cess/tax/surcharge on foreign travel is being discussed at the highest levels.
The report claimed:
The report stated that the surcharge would flow directly into the center and not into the divisible pool.
According to the report, the proposed surcharge is aimed at mitigating the fiscal impact of the war.
The rebate/tax/surcharge is likely to be temporary for one year.
The surcharge for foreign trips is aimed at mitigating higher oil and import prices.
Shortly after the rejection from PM Modi, the media apologized and added that it was retracting the story. CNBC TV-18 wrote: “Our story about the government considering a tax/ace on foreign travel is not accurate. We are retracting the report and regret the error.”
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Prime Minister Modi’s appeal to citizens
The news came days after Prime Minister Modi advised citizens to help conserve petrol, diesel and foreign exchange reserves by using public transport, avoiding unnecessary foreign trips and refraining from non-essential purchases of gold.
On May 10, he said: “The need of the hour today is to use gasoline, gas, diesel and similar resources sparingly. We must use imported petroleum products only as needed. This will not only save foreign exchange but also reduce the adverse impact of war.”
Speaking at an event in Telangana, PM Modi added, “Patriotism is not just about being willing to sacrifice your life at the border. Today, it is about living responsibly and fulfilling our responsibilities towards the nation in our daily lives.”
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The conflict between the US and Iran leaves the aviation industry in limbo
His remarks came as tensions simmered again in West Asia, with the US and Iran unable to reach a peace deal to end the war in the region. The conflict, which began in late February after the US and Israel launched a joint operation targeting the Islamic Republic, has rattled global energy markets and left the aviation industry in a state of uncertainty.
According to a Reuters report, a spike in jet fuel prices from $85-90 to $150-200 a barrel in the middle of the war blindsided the airline industry, where fuel accounts for up to a quarter of operating costs, forcing airlines to raise fares and revise financial outlooks.
The crisis has also hit India’s aviation sector, with an industry body warning the government in April that airlines could cut or stop operations if the government does not provide support for aviation turbine fuel (ATF) pricing. The Federation of Indian Airlines (FIA), which represents major airlines including Air India, IndiGo and SpiceJet, has written to the civil aviation minister for relief measures to continue operations, NDTV Profit reported.
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The shocking US-Iran truce is in place
As Washington and Tehran try to negotiate the terms of a deal to end the war and reopen the Strait of Hormuz, a shaky cease-fire that has been in place since April 8 remains in place. Despite this, both sides have not shied away from fresh threats of possible military strikes if the truce breaks down.
