PM Modi Refutes Claims of Tax on Foreign Travel Amid Oil Prices

Indian Prime Minister Narendra Modi has categorically denied a report suggesting that the government is contemplating a tax or surcharge on foreign travel. In a post on X, the Prime Minister described the claims as entirely unfounded, asserting, "This is totally false. Not an iota of truth in this."

The speculation arose following a report from CNBC-TV18 that suggested a temporary levy on international travel could be considered to relieve fiscal pressures exacerbated by soaring crude oil prices and ongoing conflicts in West Asia. Modi's intervention on social media was aimed at dispelling concerns about potential restrictions or additional costs associated with overseas travel.

Following Modi's clarification, CNBC-TV18 retracted its report and expressed regret for the misinformation, stating, "Our story on government considering tax/cess on foreign travel is not accurate. We withdraw the story and regret the error."

This discussion comes at a time when India is grappling with rising fuel prices, particularly after petrol and diesel prices increased for the first time in over four years. The escalation in global crude oil prices is largely attributed to geopolitical tensions impacting supply chains, especially in relation to the US-Iran conflict.

As per recent analysis, India relies on imports for more than 85 per cent of its crude oil demands, making the nation particularly vulnerable to fluctuations in global energy prices. During a recent five-nation tour, PM Modi held discussions focused on energy security, including a brief visit to the United Arab Emirates where India signed a Memorandum of Understanding pertaining to Strategic Petroleum Reserves.

The new agreement aims to enhance energy cooperation and provide India with a more reliable supply of crude oil. It builds on an existing partnership with the Abu Dhabi National Oil Company, which currently is the only foreign entity storing oil in India's underground strategic reserves.

In response to the escalating economic situation, Modi has called on citizens to conserve fuel and reconsider foreign travel as part of measures to strengthen the economy. He emphasised the need for self-reliance and advised against unnecessary expenditures including fluctuations in gold purchases and travel. Modi concluded his remarks by highlighting his administration's commitment to improving the 'Ease of Doing Business' and the 'Ease of Living' for citizens, reinforcing the importance of addressing economic challenges without imposing new restrictions on the populace.