With the government hiking service tax on tour operators, booking a tour from this week will get pricier. According to tour company, Thomas Cook (India), a package of Rs 1 lakh will cost about Rs 4,000-4,500 more.
With foreign tour packages costing anywhere up to Rs 4 lakh per person, a family holiday will get significantly more expensive.
Mahesh Iyer Thomas Cook (India) COO said: "The resultant doubling of tax rate on the sector.. will see a corresponding increase in tour pricing, which will in turn be passed onto customers."
With the rupee falling visa-vis the dollar and oil prices rising that may lead to end of cheap international airfares, tour companies fear a fall in outbound traffic in the post-demonetisation era and are protesting against the hike in service tax. The industry has already taken up the issue with the government.
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