Originally Posted by Bukhara

For BA (and other airlines) the Indian JN tax is based upon a percentage of the fare + YQ (fuel surcharge). From a BA perspective, the 'part cash' element is collected as payment separately from the fare (it's not actually recorded anywhere on the ticket itself) and thus is not taken into account for the luxury tax. I couldn't say with any certainty how bmi accounts for the 'part cash' element of its redemptions, but I would hazard a guess that it is similar.

India is one of the few countries with a percentage tax which essentially acknowledges that, in its view, the fuel surcharge is part of the fare.