New Delhi: Fares for first class and AC class in passenger trains besides freight charges will be increased by 0.5 per cent from June 1 as new service tax will come into effect.br br "Currently, 3.708 per cent service tax is levied on train fares for AC Class, First Class and freight. This will go up to 4.2 per cent from June which means the rise is only 0.5 per cent," said a senior Railway Ministry official.