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Enhancement of foreign travel tax
Circular No. 37 dated 18th
September 1997
I am directed to
refer and enclose a copy of each of The Finance Acts (Amendment) Ordinance, 1997
dated 16th September 1997 promulgated by the President of India and notification
No. 1/ Foreign Travel Tax dated 18th September 1997. The combined effect of the
above said letters is that with effect from 26.9.97 Foreign Travel Tax will be
chargeable at the rate of Rs. 750/- (Seven hundred and fifty only) per passenger
embarking for foreign journey to a place other than a neighbouring country. The
rate of Foreign Travel Tax for passenger embarking for foreign journey to a
neighbouring country remains unchanged. You are requested to give wide publicity
to this issue by way of issuing a Public Notice and inform each International
Airlines immediately enabling them to collect Foreign Travel Tax at enhanced
rates with effect from 00.00 hrs of 26th September 1997, i.e. 25th-26th night.
The Finance Act
(Amendment) Ordinance, 1997 No. 16 of 1997 dated the 16th September, 1997 Foreign Travel Tax and Special
Duty Raised Promulgated by the President in the
Forty-eighth Year of the Republic of India An Ordinance further to
amend the Finance Act, 1979 and the Finance (No. 2) Act. 1996 Whereas Parliament
is not in session and the President is satisfied that circumstances exit which
render it necessary for him to take immediate action; Now, Therefore, in
exercise of the powers conferred by clause (1) of article 123 of the
Constitution, the President is pleased to promulgate the following Ordinance:
(1) This Ordinance may be
called the Finance Acts (Amendment) Ordinance, 1997.
(2) It shall come into
force at once.
In sub-section
(1) of section 35 of the Finance Act, 1979, with effect from such date as the
Central Government may, by notification in the Official Gazette, appoint, in
clause (i), for the works "three hundred rupees", the words
"seven hundred and fifty rupees" shall be substituted.
In section 68 of
the Finance (No.2) Act, 1996,
(a) In sub-section (1), for
the words "two per cent", the words "five per cent" shall be
substituted;
(b) To sub-section (1), the
following proviso shall be added, namely: -
"Provided that in the
case of goods falling under heading Nos. 27.09 to 27.15 and heading No. 98.01 of
the said First Schedule, the provision of this sub-Section shall have effect, as
if for the words "five per cent", the words "two per cent"
had been substituted.
Foreign Travel Tax effective 26th
September 1997
Notification No.
1/ 97- Foreign Travel Tax dated the 18th September 1997
Pursuant to the
powers conferred by section 2 of the Finance Acts (Amendment) Ordinance, 1997
(16 of 1997), the Central Government hereby appoints the 26th day of
September 1997 as the date on which the provisions of the said section shall
come info force.
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