The government has firmly rejected speculation that it is planning restrictions on foreign travel, saying there is “no question” of such a move and reiterating its commitment to improving ease of doing business and ease of living for citizens. The clarification came after CNBC-TV18 reported that a proposal to levy a cess, tax or surcharge on foreign travel was being discussed at the highest levels to cushion the war-related fiscal impact and rising crude import costs.
According to the CNBC-TV18 report, the proposed levy was being examined as a temporary measure, likely for one year, with the proceeds expected to flow directly to the Centre and not the divisible pool. The report also said the Finance Ministry had not responded to its query at the time of publication.
However, the government’s response has now made it clear that any suggestion of placing restrictions on outbound travel is false. Officials said there is no move to curb foreign travel and no policy direction to create barriers for people travelling abroad. The statement was aimed at calming concerns after the report sparked speculation about possible cost increases for overseas trips.
The discussion on a possible levy had been linked to rising global crude prices and the wider economic strain caused by tensions involving Iran and the Strait of Hormuz. The reported aim was to cushion pressure on India’s import bill and foreign exchange outflows during a period of heightened uncertainty. But the government’s denial has now shifted attention away from any immediate policy action.
India’s economy remains exposed to global oil volatility because it imports more than 80 percent of its crude requirement. Any sustained rise in crude prices can affect inflation, transport costs, airline operations and the rupee. But for now, officials have underlined that no restriction on foreign travel is being considered and no final decision has been taken on any levy proposal.
The clarification is likely to ease concerns in the aviation, tourism and outbound travel sectors, which had been watching the report closely for signs of a possible additional cost burden on international travel. Industry participants are now expected to wait for any formal statement from the government before drawing conclusions about future policy.
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