Domestic airfares has increased incredibly after the demonetization scheme kicked in. The government has introduced a new cess to tax on domestic flights.
The government introduced Udan cess on the domestic flights which is upto 8,500. Airlines have to pay a levy of Rs 7,500 for a flight which is scheduled up to 1,000 kilometer, for a flight which travels between 1,000 to 1,500 kilometer should pay Rs 8,000 and for the flights which are scheduled for more than 1,500 kilometers should pay Rs 8,500.
The government expects 400 crore per year from this cess. Recently the airline companies had hiked their prices and made it impossible for a common man to travel by plane. When the whole country is suffering from the strict demonetization laws, the airlines have increased the price of the flight tickets.
Before demonetization the price for each domestic flight was around 4,000 but the prices are now increased to around 24,000. The reason behind the hike of the airfares is still unknown but the people are suffering with the increase in these prices.