Air ticket prices rise following tax increase

In the latest budget for 2024-25, air travel costs are set to rise significantly, especially for those flying in business and club class. Starting from July 1, the government has introduced new excise duties on air tickets for various international destinations. Travelers heading to destinations like the United States, Canada, North and Latin America will experience a substantial increase in excise duty, which has surged from Rs 250,000 to Rs 350,000. This means an additional Rs 100,000 expense for those opting for a premium flying experience to these regions.

Similarly, travelers flying business class to European countries will face a higher excise duty of Rs 210,000, up from the previous Rs 150,000. This represents a Rs 60,000 increase for those planning to explore European destinations in comfort and style. These changes, effective from July 1st, reflect the government’s efforts to generate revenue and manage fiscal challenges, albeit at the expense of increased travel costs for international air passengers.