New Delhi, Oct 30 Air travel is set to become a little more expensive with the government proposing 2 per cent levy on all domestic and international tickets to raise funds for boosting regional air connectivity.
The proposal, part of the elaborate and revised National Civil Aviation Policy, is to be implemented from January 2016.
Even as there are concerns that additional levy will push airfares higher, leading carriers IndiGo and SpiceJet said the move will help develop infrastructure for regional air connectivity which, in turn, will bring down the costs.
For Regional Connectivity Scheme (RCS), the government plans to impose a 2 per cent levy on all tickets.
Interestingly, the levy proposal comes against the backdrop of concerns expressed in various quarters about steep movement in airfares and there have been discussions to explore the possibility of capping air ticket prices.