Fact check: Is Centre planning to impose surcharge on foreign travel? PM Modi says, ‘Not an iota of truth’

Prime Minister Narendra Modi on Friday rejected reports circulating online claiming that the government is planning to impose a tax/cess/surcharge on foreign travel and called them "false."

In a post on X, he wrote, "This is totally false. Not an iota of truth in this." He added, "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."

His remarks came after a CNBC TV-18 report, citing sources, said that a proposal to levy a cess/tax/surcharge on foreign travel is being discussed at the highest levels.

Here's what the report claimed:

The report stated the surcharge would flow directly to the centre and not to a divisible pool.

According to the report, the proposed surcharge is aimed at cushioning war-related fiscal impact.

The cess/tax/surcharge is likely to be temporary for a year.

The surcharge on foreign travel is aimed at mitigating higher crude and import costs.

Shortly after a rebuttal from PM Modi, the media outlet issued an apology, adding that it was withdrawing the story. CNBC TV-18 wrote, "Our story on government considering tax/cess on foreign travel is not accurate. We withdraw the story and regret the error."

PM Modi's appeal to citizens

The report came days after PM Modi advised citizens to help conserve petrol, diesel, and foreign exchange reserves by using public transport, avoiding unnecessary foreign trips, and refraining from making non-essential gold purchases.

On May 10, he said, "Today, the need of the hour is to use petrol, gas, diesel, and similar resources with restraint. We must use imported petroleum products only as needed. This will not only save foreign exchange but also reduce the adverse impact of war."

Speaking at an event in Telangana, PM Modi added, "Patriotism is not only about the willingness to sacrifice one's life on the border. In these times, it is about living responsibly and fulfilling our duties to the nation in our daily lives."

US-Iran conflict leaves the aviation sector in uncertainty

His remarks came as tensions simmered in West Asia again, with the US and Iran failing to achieve a peace deal that would end the war in the region. The conflict, which began in late February after the US and Israel launched a joint operation targeting the Islamic Republic, has rattled the global energy markets and left the aviation sector in a state of uncertainty.

According to a Reuters report, a surge in jet fuel prices from $85-$90 to $150-$200 per barrel amid war has blindsided the aviation industry, where fuel accounts for up to a quarter of operating expenses, forcing airlines to raise fares and revise financial outlooks.

The crisis has also affected the aviation sector in India as well, with the industry body warning the government in April that the airline companies could fold or stop operations unless the government provides support on aviation turbine fuel (ATF) pricing. To continue operations, the Federation of Indian Airlines (FIA), which represents major carriers including Air India, IndiGo, and SpiceJet, has written to the Civil Aviation Secretary for relief measures, NDTV Profit reported.

US-Iran shaky ceasefire holds

As Washington and Tehran try to negotiate the terms of the agreement to end the war and reopen the Strait of Hormuz, a shaky ceasefire, which has been in place since April 8, still holds. Despite this, the two sides have not shied away from renewing threats regarding possible military strikes if the ceasefire collapses.