ETW Staff – Mumbai
The expectations surrounding the Union Budget, scheduled to be disclosed by the finance minister, Arun Jaitley, on February 29, 2016, are high this year. From the hospitality industry gaining infrastructure status to the roll-out of the GST to getting a boost in inbound and domestic tourism, the expectations are widely varying among hospitality and tourism professionals across the country. Sharing his views on this year’s Union Budget, Sarabjit Singh, vice chairman, Federation of Associations in Indian Tourism & Hospitality (FAITH) opined, “Indian tourism needs to escape from its trajectory of low shares by working on a set of structured Union Budget driven initiatives. On an immediate basis, there is a need to enhance competitiveness of Indian tourism exports and remove service tax applicability on tourism units which are earning in foreign exchange, by removing the place of provision of service clause under rule 6A of service tax rules. Enable setting up of Mega Tourism Zones on the lines of SEZ/ national manufacturing zones under the same policy guidelines. Position India as the meeting, conventions hub of the world by setting up a global conventions bidding fund of Rs 100 crore used for bidding and attracting world congresses.”
Speaking about the need for granting infrastructure status to the hospitality industry and boosting domestic tourism, Singh added, “Stimulate domestic tourism by extending an LTC like scheme across all tax paying Indian citizens and also provide 150 per cent weighted deduction on expenditure incurred by corporates on undertaking conferences, conventions and incentive trips in India. Classify hospitality as infrastructure and enable development of soft tourist infrastructure around all our monuments and cultural heritage sites on a PPP. Declare a new class of venture capital instruments for funding tourism businesses of micro, small and medium enterprises. Set up one India Haat (on the lines of Delhi Haat) in every capital city and in the top 20 tourism cities of India. Incentivise adventure tourism activities in India by extending 100 per cent import duty exemption on adventure tourism equipment and accessories. For the incoming GST regime ensure a GST tourism guidance of lower GST slab or less than 10 per cent whichever is lower.”
Giving his perspective, Sunil Kumar, president, Travel Agents Association of India (TAAI) stated, “The government should review the taxes especially the ones put on inbound travel because it has been majorly impacted. The GST bill is much awaited by the travel fraternity. I hope it will be implemented soon.”