• Source:JND
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Prime Minister Narendra Modi, in a rare rebuttal to a media report, rubbished a claim that the Centre is considering a cess or tax on foreign travel on Friday. Reacting to a report by CNBC-TV18 on X, PM Modi called the news article totally false.

"This is totally false. Not an iota of truth in this. There is no question of putting such restrictions on foreign travel. We remain committed to improving ‘Ease of Doing Business’ and ‘Ease of Living’ for our people," PM Modi X post read.

What Is The Matter?

A news outlet, CNBCTV18, published an exclusive report, citing sources, that the government is considering a tax or cess or surcharge on foreign travel, prompting PM Modi to refute the claim and call it false.

The report claimed that a proposal has been put forth at the highest levels for consideration to levy a cess/tax/surcharge on foreign travel. However, the news outlet said the government has not yet made a decision.

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CNBC-TV18's report further claimed that a proposal to levy a cess, tax, or surcharge on foreign travel is currently being discussed at the highest levels. The report stated that this cess on foreign travel will flow directly to the Centre and will not be part of the divisible pool.

News Report Linked It To Global Fuel Crisis

The news outlet said the government's proposal aims at cushioning the fiscal impact related to the war and is likely to be temporary, for a period of one year. According to the CNBC-TV18's report, the government's proposed tax is a part to initiatives to help mitigate the impact of higher crude oil and import costs to control inflation.

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However, the news outlet said it had approached the Finance Ministry, but it did not respond to its query on the matter.

PM Modi's Appeal For Austerity Measures 

The development comes at a time when the government focuses on pushing austerity to reduce the import bill, bolster the rupee, and manage the growing energy crisis. A few days ago, PM Modi urged people to adopt austerity measures, including stopping gold purchases and avoiding non-essential foreign travel, to conserve foreign exchange reserves amid a severe economic downturn triggered by the Middle East crisis, following the US-Iran war. 


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