International Tourism Receives A Boost With Central Budget Reducing TCS
Union civil aviation minister Kinjarapu Ram Mohan Naidu, through a statement, has welcomed this proposal, stating that the reduction in tax on foreign travel will further boost the civil aviation sector: Reports
VISAKHAPATNAM: Union Budget 2026's proposal to implement a flat 2 per cent Tax Collected at Source (TCS) on overseas tour packages, down from the earlier 5–20 per cent, is expected to benefit international travellers, including those from Visakhapatnam, which handled 94,011 international passengers between January and November 2025.
Union civil aviation minister Kinjarapu Ram Mohan Naidu, through a statement, has welcomed this proposal, stating that the reduction in tax on foreign travel will further boost the civil aviation sector. He maintained that this will help achieve Prime Minister Narendra Modi's Viksit Bharat goals more quickly.
Andhra Pradesh Tourism Forum president Vijay Mohan appreciated the central government's proposal, explaining its practical benefits for travellers and the tourism industry. "India is not a completely online-driven market. A lot of people travel using the packages offered by tour operators,” he pointed out.
When a person planning a foreign trip for the family costing ₹4 lakh comes to a travel agent, s/he will find it difficult to pay 5 per cent TCS plus 5 per cent GST. The client has to pay an extra ₹10,000. Reduced TCS will really help the travel industry and customers alike, by lowering upfront costs. It will make international travel easier for Indian travellers.
In this regard, Vijay Mohan expressed optimism that future international connectivity will become easier with Thai Airways soon commencing operations from Visakhapatnam. Further, once the Bhogapuram Airport becomes operational, the movement of international passengers will cross the 1.5-lakh mark.
Visakhapatnam International Airport currently operates two international routes: Visakhapatnam to Abu Dhabi and Visakhapatnam to Singapore. Between January and November 2025, the airport recorded 793 international flight movements, with 401 arrivals and 392 departures.
Monthly passenger data shows peak activity in January (11,107 passengers), April (9,801), August (9,248), and October (9,476), aligning with holiday and travel windows. The Vizag airport handled 46,211 international arrivals and 47,800 departures during the period.
