PM Modi fact-checks travel tax rumor

Prime Minister Narendra Modi publicly denied on May 15 that his government was considering a tax on foreign travel, calling the claim “totally false” in a post on X. The denial came after a report circulated saying the Centre was discussing a cess, tax or surcharge on overseas trips. Follow-up coverage by Indian media outlets said the report was later withdrawn and that an apology was issued. Modi’s response drew attention because it came days after he had separately urged Indians to avoid non-essential foreign travel for a year as part of a broader austerity appeal tied to higher energy costs. ### What exactly did Modi deny? Narendra Modi said on X on May 15 that there was “not an iota of truth” in a report claiming the government was planning restrictions or a tax on foreign travel. He added that there was “no question” of imposing such restrictions and said his government remained committed to improving “Ease of Doing Business” and “Ease of Living” for Indians. The Indian Express, in a report published May 16, said the disputed story had claimed the Centre was considering levying a tax on foreign travel. The newspaper said the media organization later withdrew the report after Modi’s clarification. ### Why did the rumor gain traction in the first place? (indianexpress.com) CNBC reported on May 11 that Modi had urged Indians to curb fuel use, reduce overseas travel and pause gold purchases as the Iran war raised risks for India’s economy. In that report, CNBC said rising energy costs threatened India’s trade balance and currency stability. (indianexpress.com) That earlier appeal gave the foreign-travel issue political and market sensitivity. CNBC said India imports nearly 85% of its fuel needs and that about 32.7 million Indians traveled abroad in 2025, including more than 14 million leisure travelers. ### Did India recently raise taxes on overseas travel? (cnbc.com) Union Budget 2026 moved in the opposite direction on one existing travel-related levy. CNBC TV18 reported on February 1 that the budget proposed reducing Tax Collected at Source on overseas tour packages to 2% from earlier slab-based rates of 5% and 20%, with no minimum threshold. (cnbc.com) The same CNBC TV18 report said the change was meant to lower upfront cash outflows for individuals making overseas payments under the Liberalised Remittance Scheme. It described the measure as making international travel bookings cheaper and less complicated for Indian travelers. (cnbctv18.com) ### Was Modi calling for less travel, or a formal restriction? Modi’s May 11 remarks, as reported by CNBC and other Indian outlets, were an appeal for restraint rather than an announced legal restriction. CNBC said he asked citizens to use public transport, work from home, carpool, reduce overseas travel and pause gold purchases as global fuel costs rose. (cnbctv18.com) The distinction matters because the false report described a possible tax or surcharge, while Modi’s public comments described voluntary steps to reduce pressure on fuel demand and foreign exchange. That contrast is visible in the text of his X denial and in the earlier CNBC account of his austerity message. (cnbc.com) ### What can readers verify now? The Indian Express reported on May 16 that the report was withdrawn after Modi’s intervention, and social-media posts circulated screenshots that said an apology had been issued. As of May 16, the clearest verified record is Modi’s own May 15 X post denying any proposed foreign-travel tax and the follow-up reporting describing the withdrawal. (indianexpress.com) Readers looking for the next public record should watch Modi’s X account, CNBC and CNBC TV18’s published corrections or archived pages, and any statement from India’s finance ministry.