Modi govt imposes up to Rs 8,500 levy per flight; airfares to rise

November 11, 2016

New Delhi, Nov 11: Airfares are set to rise with the government deciding to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme.

airfaresThe levy amount would be for an entire flight and the price of each ticket could go up depending on the number of seats in that particular flight.

Civil Aviation Secretary R N Choubey today said the levy would be up to Rs 8,500 per flight depending on distance. The ambitious scheme -- UDAN (Ude Desh ka Aam Naagrik) -- seeks to connect small cities by air as well as make flying more affordable for the masses.

To provide viability gap funding for the flights operated under the regional connectivity scheme, the Ministry would impose a levy on every departure on major air routes such as the national capital, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata.

"The levy for an up to 1,000 kilometre length of scheduled flight will be Rs 7,500 per flight, Rs 8,000 for a 1,000 to 1,500 kilometre flight and Rs 8,500 for flights above 1,500 kilometre," Choubey said here.

For UDAN, the government would be creating the Regional Connectivity Fund (RCF).

With the levy, the government estimates to have Rs 400 crore for RCF, Choubey said. "In addition to this, another 20 per cent (funding) will come from state governments. We are roughly looking at around Rs 500 crore per year available in the kitty," he noted.

The move would push airfares slightly higher as airlines are expected to pass on the burden to fliers.

The funding is being provided since the fares of half of the seats operated in a particular flight under UDAN would be capped at Rs 2,500 for one-hour duration. This cap would be applicable for distance of 476-500 kilometres.

The limit of RCS airfare would vary from Rs 1,420 to Rs 3,500 for fixed-wing aircraft. For helicopters, half-an-hour ride under the scheme would cost Rs 2,500 and for over one- hour duration, the cap would be Rs 5,000.

RCF is to be funded by the Centre and respective state government participating in UDAN.

Comments

Abdul
 - 
Saturday, 12 Nov 2016

This feku is looting the Rs 15 lakhs from aam aadmi. These things will happen when u people elect chaiwala as a PM. He is only to trouble aam aadmi bcoz he has allergy to Aam Aadmi Party

naren kotian
 - 
Saturday, 12 Nov 2016

Please put it on gulf route and we also need complete x ray body scanners at airports to clamp down on smugglings and its fine price will be go up by 50 rs . we are okay with it .

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News Network
May 18,2020

Bengaluru, May 18: A large number of people in India are planning inter-city bus travel within a month of the lifting of travel restrictions, according to a randomised online survey of over 10,300 customers of redBus, India's largest online bus ticketing platform.

Nearly 57 per cent of the respondents are planning to travel within a month post the lockdown. However, there is a high standard of expectation on the implementation of measures to make buses safe for travel with over 79 per cent wanting deep cleaning and sanitisation of buses after every trip.

Hand sanitisers, mandatory masks and temperature screening for all passengers are next in expectations for bus travel. Over 78 per cent of the respondents want the implementation of hygienic conditions at boarding points and 70 per cent want social distancing protocols to be implemented at boarding points.

"The survey does underscore the fact that given the adherence to safety protocols, bus travel is possibly one of the safest options for travel since the number of travellers are fewer, checks can be done individually and the whole factor of pick up and drop as close to home as possible minimises the number of contacts throughout the journey," said redBus Chief Executive Officer Prakash Sangam.

In addition, online booking further reduces the number of contact points as people can book bus tickets directly from their home. Further, there is a heightened awareness of personal hygiene and safety measures which is important for the travel to be safe.

"The large number of people waiting to travel not only points to the need but also the importance it has for the revival of economic activity as very few of them would be travelling for leisure," said Sangam.

The survey also showed that passengers put a very high consideration on hygiene, sanitation and disinfection -- over 73 per cent -- and social distancing (63 per cent) and much lower consideration to traditional factors such as travel cost (22 per cent), comfort (21 per cent) and punctuality (18 per cent).

The survey was conducted among redBus customers across India. Only 5 per cent of the respondents were willing to postpone their travel to over six months while the rest had plans to travel within that period.

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News Network
June 26,2020

Bengaluru, Jun 26: Karnataka's Commercial Taxes Department has sealed off an undeclared warehouse with imported goods worth Rs 4 crore in Bengaluru and found 60 GST registrations linked to a Chinese national from Wuhan.

The tax department officials found 25,446 China-made electronic and fast-moving consumer goods worth Rs 4 crore stored in the warehouse which was not declared to the tax authorities.

Commissioner of Commercial Taxes MS Srikar said in a statement that the officers noticed that one person from Wuhan City, China, got the premises in Bengaluru on lease.

They also found that about 60 registrations (both central and state jurisdictions) under the GST Act, in the name of a number of persons for online trading of imported China-made goods, had a single address which was vacant.

Most of the registrations were found irregular in the filing of returns and payment of tax. Majority of the firms either filed nil returns or were non-filers. The registration data showed that one business was registered in 2017-18, 43 in 2018-19, 14 in 2019-20 and two in 2020-21. Most of the 60 firms were private limited companies and 24 persons were interchangeably directors in 58 firms.

At the time of raid, neither the lessee, the Chinese national, nor any of the other 59 registered taxable persons were available at the business premises and no one came forward to participate in the proceedings in spite of providing sufficient time.

It is learnt that the Chinese national is operating the business from Wuhan City since January 2020 with the assistance of some of his agents/employees in Bengaluru.

It has also been learnt that multiple registrations are being taken for a better rating on e-commerce platforms, Srikar said.

The raids were led by Nitesh K Patil, Additional Commissioner, Enforcement, South Zone.
The Commercial Taxes Department is closely watching the genuineness of newly registered persons and conducting post-registration verification visits.

Any registration taken with mala fide intention of evading taxes will be dealt with seriously, the Commissioner said. 

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News Network
July 3,2020

Bengaluru, Jul 3: Opposition leader in the Karnataka Legislative Assembly and former Chief Minister Siddaramaiah on Friday opined that there is no other option left but to resort to 'Jail Bharo' agitation to expose the ruling BJP government's indulge in 'Corona Corruption' which runs into more than Rs 2000 crore.

Siddaramaiah said that according to a submission to the Karnataka High Court the government has submitted that it has incurred Rs 3,392 crore expenditure for Corona in the State so far. While the market price for equipment purchased will not exceed Rs 1163 crore and it clearly shows that the corruption is to the tune of Rs 2,000 crore.

Siddaramaiah speaking to a private TV channel here on Friday said the chief minister B S Yediyurappa-led State government should come out with a White Paper on the money spent for purchases made facilities provided to patients. 

According to submission to the Court, the Government has purchased 1000 Ventilators by paying Rs 120 crore, while the market price is Rs 40 crores at Rs 4 lakh for each Ventilator. Why is Rs 120 crore more paid, does it not lead to doubt the government's claim. For purchase of kits, mask, gloves etc. it amounted to Rs 1,500 crores but paid by the government was Rs 9,000 crore."

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