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Clarify tax in fares, airlines told

NEW DELHI: The government has asked all domestic airlines to clarify what are the charged tax components in their fares and confirm whether all the taxes shown by them in their tickets/websites are deposited with the government.

The airlines have also been asked to submit the record of the taxes deposited with the government at the earliest.

The Director-General of Civil Aviation, in a recent letter to all airlines, said that a perusal of the fares shown on the airlines’ websites has revealed that the fares have two components — the basic fare and the taxes.

It is not clarified as to whether components such as passenger service fee and fuel surcharge are included in the basic fare or have been clubbed under “taxes.”

The letter said a “tax” was defined to be a fee levied by the government on a product, income or activity. Such amounts are to be deposited with the government and a record is to be maintained.

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