If you are traveling in the country by domestic flights, then inflation will worsen your condition. Air ticket prices have increased so much recently that Aviation Minister Jyotiraditya Scindia himself had to call a meeting of airlines and ask them to monitor air ticket prices. Now a new news is that from July, international travel will become expensive.
Actually, the possibility of international travel becoming expensive has been made due to a decision of the Reserve Bank of India. This increase in the cost of travel can be up to 20 percent.
RBI's decision and expensive foreign tour
Till now, overseas payments through debit cards were considered as remitted funds under the Liberalized Remittance Scheme (LRS) of RBI. Accordingly, there was tax collection at source (TCS) on these transactions. In this scheme, if the payment for international travel was done by international credit card, then they would get a special discount. Now RBI has removed this exemption.
This means that now people will have to pay TCS of 20 percent on payment from International Credit Card, which is going to be implemented from July 1, 2023. Earlier this limit of TCS was also 5 percent, which has now increased.
With this move, those making travel bookings with international credit cards will have to pay more. The reason for this has been attributed by the government to the purchase of foreign LRS through credit cards in excess of the annual limit ($ 2.5 million).
Air tickets are expensive in the country
At the same time, since the closure of GoFirst service, there has been a huge increase in fares on major air routes in the country. That is, traveling at the domestic level has also become expensive for people. An increase of 3 to 5 times has been observed in the ticket price. Where the average spot air ticket price on the Delhi-Mumbai route was around Rs 6,000, it has crossed Rs 18,000 in June. Whereas on the Delhi-Patna route, tickets up to Rs 22,000 are now available.
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