In the latest budget for 2024-25, air travel costs are set to rise massively, particularly for those flying in business and club class.
Starting from July 1, the government has introduced new excise duties on air tickets to various international destinations.
These changes take effect on July 1st and will be felt most by travelers heading to destinations like the United States, Canada, North and Latin America. The excise duty for these routes has jumped significantly, from Rs 250,000 to Rs 350,000. That's a cool Rs 100,000 extra you’ll need to shell out for that premium flying experience.
Europe isn’t spared either. Business class flights to European countries will now come with a Rs 210,000 duty, up from the previous Rs 150,000. This represents a Rs 60,000 increase for those hoping to explore European destinations in style.
Travelers to New Zealand and Australia will also face a similar Rs 60,000 duty hike, bringing the total to Rs 210,000. And it’s not just long-haul trips that are affected. The duty on business class tickets to popular Asian destinations like China, Malaysia, and Indonesia has also been raised to Rs 210,000.
Meanwhile, travelers to Saudi Arabia, UAE, the Middle East, and African countries will now pay an additional Rs 30,000, with the new excise duty totaling Rs 105,000. These changes reflect the government’s strategy to increase revenue through higher taxes on luxury travel options.