Travel agents oppose hike in service tax

KOCHI:  The Travel Agents Association of India has come out against the Union Government for hiking the service tax in this year’s Union Budget. The organisation said the ‘multifold increase’ as ‘unreasonable’ and ‘unfair.’“It is shocking to learn about the severe implications of the service tax on the passengers in the country,” the organisation according to a press statement issued by the association. The proposal on the service tax hike seems to have escaped the attention of the media as well, the statement said.The JN Tax on international economy class tickets, prior to the Budget was Rs 772.5 or 10.3 percent whichever is lower. The tax itself is a burden on the passenger since the passenger is already paying a service tax to the government through the travel agency, which is about 10 per cent of the fare. This tax has also increased to 12.36 per cent on the basic fuel and insurance rates, the statement said.The exorbitant rate is unjustifiable. In no progressive economy with consistent systems, can an increase of this magnitude be tolerated.Every increase must be made in such a way that the industry players are comfortable to cope up with it, the statement said.