India plans two percent flight tax to fund regional air travel boost

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New Delhi, Oct 30 (ANI): India plans to impose a two percent levy on most domestic and international airline tickets, the government said on Friday raising funds to improve regional air travel infrastructure as part of a long-awaited proposal to get more national flying. Releasing the government’s draft aviation policy, civil aviation secretary R.N. Choubey said the tax may raise about 15 billion rupee. Funds will go towards reopening hundreds of disused airstrips, building no-frills airports and providing finance to airlines to help keep prices on regional routes at 2,500 rupees per hour of travel. India is one of the world’s fastest-growing aviation markets, with around 70 million domestic tickets sold annually and passenger numbers rising 20 percent a year. Choubey said raising regional air connectivity would see annual ticket sales jump to 300 million by 2022. Choubey also said that the ministry wants to promote Prime Minister Narendra Modi’s ‘Make in India’ initiative to boost in house manufacturing.

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