Trade condemns LTC cash voucher scheme

Finance minister Nirmala Sitharaman has announced the LTC cash voucher scheme, under which government and private sector employees can use their Leave Travel Concession tax-free benefit for various types of purchases subject to certain conditions. FAITH, however, has denounced the scheme and has expressed disappointment for the Indian travel and tourism industry, saying that LTC funds of government employees will be redirected to buy consumer goods. FAITH claimed that the travel and tourism sector was pinning hopes on the festival season for people to travel.

In a statement, the Federation said, “The Government redirecting the LTC money of government employees to buy consumer goods would dry up those funds for the travel sector. Additionally, it would also send a vote of no-confidence to the tourism, travel and hospitality industry, which was looking to get back on its feet after ‘Unlock’.” Additionally, Jyoti Mayal, Vice Chairman, FAITH, has said, “The tourism industry, instead of being bailed out is now being deprived of the LTC fund. Our industry is dying and our employees are losing jobs in every avenue, but the Prime Minister has forgotten our existence, the backbone of India.”