‘Travellers will feel disappointed about higher taxes for luxury segment, but no choice but to pay’

Sharing his perspective on the impact on revised GST, Santosh Sharma, Founder & CEO, BookMyJet, says, “As far as private charters are concerned, GST on buying a private jet under private category has gone up from 28% to 40%. This would definitely discourage the individual & corporate houses who are deliberating to buy their private jet under private category. Thankfully, there’s no GST implication on people who are willing to buy aircraft under NSOP category where the tax is about 5%. However, flying has increased tremendously since covid. The increase in tax, which is from 12 to 18% on business travel, will definitely discourage people from flying but people in this category wouldn’t reduce their flying cos of this. Also, the way our economy is growing and the way HNIs and corporate honchos are flying, I don’t think this additional 6% tax will hit them, because they have no choice but to pay this. As far as, premium flying is concerned, these people were already paying taxes. And in most of the airports the charges have gone up drastically. And still people are flying. So, it is natural that travellers will feel disappointed that taxes have gone higher for the luxury segments, but they have no choice but to pay the extra amount and continue to fly. I don’t think this will impact anybody except people who wanted to buy a private jet in the private category who might now think of getting their aircraft under NSOP category.”