Govt doesn's want you to holiday! Package tours become costly

New Delhi: Holidaying in times of cash crunch! Government it seems doesn’t like the idea, so get ready to pay more for going on a holiday. If you have made up plans to go on a vacation with your friends and family the get ready to shed at least 15% more than what you may have calculated.

All this because of a new government notification that says that tour operators will have to pay a service tax on 60 per cent of the amount they bill the customer from January 22. Earlier, operators offering a package tour had to pay service tax on 25 per cent of the bill amount, on 10 per cent of the bill amount if the tour operator only arranged or booked accommodation for a person in relation to a tour, and on 40 per cent of the bill amount if any other tour-related services were offered.

Now, all big tour operators are calculating the impact, but said at least 10% to 15% increase in costs will have to be passed on to the customers (News24Bureau).