Srinagar: The government Thursday said that no pilgrimage has been taxed under the new Goods and Services Tax (GST) but the tax will be levied on airfares.
A senior official in the government’s finance department said that under the GST 5 % tax is being levied on airfares.
“This is not tax on Hajj, Umrah or any other pilgrimage, but it is a general tax on airfare as per the GST,” the official told KNS.
“All airfares will be taxed by 5 % except the Business class tickets,” he said.
An official in the Commercial Tax department told KNS that under GST no tax has been specifically imposed on any pilgrimage but on the packages of private tour operators.
“The 5 % tax is levied on private tour operators whether they take the tour is for pilgrimage or holidaying,” he said.
Under GST, specified pilgrimages are exempted from service tax whether being offered by Government or religious body or State Hajj.
However, the tour operators are angry with the tax levied on the packages.
President Kashmir Chambers of Commerce and Industry Mushtaq Ahmad Wani told KNS that such levy cannot be undone by the state as it has handed over the tax powers to GST Council. (KNS)
