- Prime Minister Modi denied any proposal to tax foreign travel, calling reports false
- The government remains focused on improving ease of doing business and living
- Earlier on Friday, a report claimed that the government was considering to impose a tax on foreign travel
Hours after a news report claimed that the government is considering to impose a tax on foreign travel, Prime Minister Narendra Modi took to social media to clear the air. There is no such proposal under consideration, he said, calling the news "totally false".
"This is totally false. Not an iota of truth in this. There is no question of putting such restrictions on foreign travel," Modi said in a post on X.
"We remain committed to improving ‘Ease of Doing Business' and ‘Ease of Living' for our people," the prime minister added.
The clarification, from the highest office in the central government, came after CNBC TV-18 reported on Friday that the Centre was mulling over a proposal to levy cess, tax or surcharge on foreign travel. The proposal is being discussed at the "highest level", the news channel had said, citing sources.
The report had further claimed that the levy would be collected by the Centre, and would not be part of the divisible pool with the states. The move, it said, was aimed at cushioning the war-related fiscal impact.
Furthermore, the report also claimed that the levy would be applicable for a one-year period.
The news raised concern among scores of Indians who embark on international trips for business, education and leisure purposes. However, the government has issued a clarification within hours, with the prime minister himself trashing the claims.
Following Modi's statement, CNBC TV-18 said it is withdrawing the report. "Our story on government considering tax/cess on foreign travel is not accurate. We withdraw the story and regret the error," the news channel said in an X post.
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Notably, the prime minister had made an appeal to the country on May 10, urging restraint on unnecessary international travel over the next one year. This, he explained, is necessary to shore up the country's foreign exchange reserves amid the current global headwinds.
"The growing culture of weddings abroad, travelling abroad, and vacationing abroad is becoming prevalent among the middle class," he had said, while addressing a public meeting in Hyderabad. "We should postpone travelling abroad for at least a year."
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