Foreign Travel To Be Taxed? Centre Considers Big Move Amid West Asia Crisis, No Final Decision Yet

Last Updated:May 15, 2026, 18:06 IST

According to sources, a proposal to levy an additional charge on overseas travel is currently being discussed at the highest levels of the government.

Amid mounting economic pressure caused by supply chain disruptions linked to the ongoing US-Iran conflict, the Government of India is considering imposing a tax, cess or surcharge on foreign travel, sources told CNBC-TV18. However, no final decision has been taken yet.

According to sources, a proposal to levy an additional charge on overseas travel is currently being discussed at the highest levels of the government as authorities explore measures to manage the widening fiscal impact of the geopolitical crisis.

The discussions come after Prime Minister Narendra Modi urged citizens to avoid non-essential foreign travel for a year in view of the ongoing global uncertainties and rising fuel costs.

Brent crude prices have crossed USD 100 per barrel amid fears of prolonged instability in West Asia and no visible signs of a resolution to the US-Iran conflict. The spike in crude prices has raised concerns over higher import bills, inflationary pressures and increased transportation costs.

Sources said the proposed cess or surcharge, if implemented, would flow directly to the Centre rather than forming part of the divisible tax pool shared with states. The move is aimed at helping the government cushion the fiscal impact of the conflict and offset rising crude oil and import-related expenses.

Airfares on several international routes have already witnessed a sharp rise in recent weeks due to increased fuel costs, airspace disruptions and operational uncertainties linked to the conflict.

News india Foreign Travel To Be Taxed? Centre Considers Big Move Amid West Asia Crisis, No Final Decision Yet

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