Lucerne (Photo credit: Wikipedia)NEW DELHI: The falling rupee is not the only villain making the foreign holiday package more expensive. From July 1, travel agents organizing package tours for foreign destinations have started levying 3% service tax on hotel booking, sightseeing tickets, taxi and other travel arrangements being made to ensure a smooth stay for their guests abroad. Earlier, service tax was levied only on air tickets. Now with the expansion in service tax net to newer areas, package tours abroad have become more expensive. Benson Samuel of Delhi-based Riya travels said: "This has affected prices. For example, a land package tour price to Singapore in a three-star hotel has increased from Rs 20,976 per person on twin-sharing basis to Rs 22,013. Tour cost for Swiss towns of Interlaken and Lucrene in a similar rated hotel has gone up from Rs 38,924 per person on twin-sharing basis to Rs 40,848 per person on twin-sharing basis."
Mohit Gupta, Make My Trip's chief business officer (holidays), said: "The impact has been a straightforward 3% on non-air travel component. This new levy could not have come at a worse time."
Edited By Cen Fox Post Team
