Prime Minister Narendra Modi firmly dismissed reports suggesting that the government was contemplating new taxes, such as a cess or surcharge on foreign travel, to mitigate the economic impact of ongoing global conflicts. In a post on X, PM Modi stated, “This is totally false. Not an iota of truth in this. There is no question of putting such restrictions on foreign travel. We remain committed to improving ‘Ease of Doing Business’ and ‘Ease of Living’ for our people.”
The Prime Minister’s remarks followed a media report that cited anonymous government sources claiming discussions were taking place at high levels regarding the imposition of such a financial levy. The report indicated that this proposed tax was intended to offset the fiscal pressures stemming from rising crude oil prices and increased import costs due to ongoing geopolitical tensions.
According to the information presented in the report, any potential tax or surcharge on foreign travel would be directed to the Centre rather than the divisible tax pool and might be implemented temporarily for up to one year. The finance ministry had reportedly not provided any comment on the proposals raised in the report.
Despite these claims, PM Modi’s emphatic denial emphasized the government’s commitment to facilitating business and travel for citizens. Additionally, during a public gathering in Hyderabad on May 10, he had previously urged citizens to consider delaying non-essential foreign travel and avoid purchasing gold to help conserve foreign exchange reserves amid the global energy crisis influenced by conflicts involving the US and Israel with Iran.
