NEW DELHI: Prime Minister Narendra Modi on Friday strongly rejected reports claiming that the Centre was considering imposing a cess, tax or surcharge on foreign travel to offset the fiscal impact of the ongoing conflict-linked economic pressures.Responding to the report in a post on X, PM Modi said, “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.”
PM Modi’s response came after a media report quoting government sources claimed that discussions were taking place at the “highest levels” regarding a possible temporary cess or surcharge on foreign travel.According to the report, the proposed levy was being considered to cushion the fiscal impact arising from the ongoing war situation and rising crude oil and import costs.The report further claimed that any cess, tax or surcharge on foreign travel would flow directly to the Centre instead of the divisible tax pool and could remain in place for one year as a temporary measure.The report also stated that the finance ministry had not responded to queries regarding the proposal.However, PM Modi denied the claims and asserted that the government remained focused on easing business and travel-related processes for citizens rather than imposing new restrictions.Meanwhile, Prime Minister Narendra Modi last week while addressing a public gathering in Hyderabad on May 10 had appealed to citizens to avoid buying gold and postpone non-essential foreign travel for a year in order to conserve foreign exchange reserves amid the global energy crisis triggered by the ongoing US-Israeli conflict with Iran.