Plans to levy cess on air tickets scrapped

The Ministry of Civil Aviation (MoCA) has dropped the proposal to levy a 2 per cent cess on air tickets to fund the regional connectivity scheme (RCS). The cess had been included in the draft civil aviation policy, which is expected to receive cabinet approval by end-March 2016. The MoCA has decided that it does not want to burden consumers with any fare hike. Meanwhile, other sources of funding for the RCS are under consideration.

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