NEW DELHI: Get ready to shell out a lot more for package tours as the government has hiked taxes on tour operators . As a result, costs may go up by 10%-15%, say travel industry insiders.“The government has changed service tax applicable on tour operators. With effect from January 22, 2017, tour operators would be required to pay service tax on 60% of the total invoice value.Whereas, currently the tour operators pay service tax in two slabs – only for booking hotel accommodation the tax is payable on 10% value and for other tours the tax is payable on 30%,” said Rajeev Dimri , chief (indirect tax) BMR & Associates LLP.“Thus this amendment would be prejudicial to tour operators and may significantly impact the financial models of their business engaged in tour and travel booking. In the recent past, the tour and travel industry has been plagued with intense inquiries and investigations from service tax authorities with respect to services related to booking hotel accommodation. The recent amendment, instead of clarifying the issue, creates more doubts for the industry, specially related to taxability of the stand-alone hotel booking transaction in the hands of tour operators,” Dimri added.All big tour operators said they are analysing the impact of this change while estimating a 10% to 15% hike in costs that will have to be passed on to the end customer.