Strong demand for GST reform

Ahead of the upcoming Union Budget 2018-19, the trade demands a higher budget allocation for infrastructure and hopes for GST reforms to ease day-to-day business of tour operators and hotels.

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“We expect a higher budget allocation for the tourism sector to undertake extensive promotional activities, develop and promote new destinations. Relief in GST for tourism is awaited as per the recommendations of FAITH. Previously, the government had promised to recognise five tourism zones which are yet to be launched. The government needs to encourage private investment by giving attractive subsidies to investors for infrastructure development and employment generation. Under ‘Dekho Apna Desh’ campaign, the government should focus on domestic sector by allowing tax free tours.” – PP Khanna, President,  ADTO

“I wish the corporate tax structure is further rationalised for the MSME, since the GST system is well in place. The government should look at giving us ‘Industry’ status and offer incentives to companies which are regular tax payers and in the highest tax slab. There is inconsistency in regulations between and the Centre and State for tourism. We need a simpler Centredriven initiative to bring all states on a common platform to further the government’s objective of ease of doing business. The overall taxation on tourism and hospitality sectors need to be restructured and lowered so as to stimulate growth and make India competitive.” – Mahendra Vakharia, India Travel Award winner and President, OTOA

“TAAI sits on the board of FAITH (Federation of Associations in Indian Tourism & Hospitality). We were invited to attend the pre-budget meeting on December 6 with the Finance Minister, where we raised several points such as export status for tourism, IGST unlocking for hotels, B2B credit for tour operators, etc. For IGST and export status, they have recommended approaching the law team of GST. Credit for tour operators and 18 per cent on rides is done in the GST council meeting. TAAI has also requested to make aviation a more transparent industry and recognise agents as principals. We will definitely be recognised as an industry.” – Jyoti Mayal ,Hon. Secretary,  TAAI

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