II. Budget 2016 expectations from Spicejet: Indirect Tax Proposals (Service Tax) 1. Increase of abatement available to the Air Transport of Passengers from 60% to 80% so that the effective service tax rates comes down to 2.8%. The upper limit of Service Tax on ticket price, up to March 2012, were Rs.150 and 750 in respect of domestic travel and international travel respectively, however w.e.f. April 1, 2012, a new scheme of service tax has been introduced wherein the service tax is charged on the full amount of the ticket with an abatement of 60%. This change has made air travel more costly. It is requested that the abatement on service tax on ticket price should be increased to 80%. We would further like to request that it may be clarified that the above abatement is always applicable to all the passenger related revenues earned by the airlines.