Industry status and Tax relief high on pre-budget expectations for the travel and tourism industry

For the betterment and growth of the travel and tourism industry, industry stakeholders are looking forward positively to the upcoming budget by the new government. Of the few requests, the industry is looking at an industry status for the travel and tourism industry, infrastructure status for the hotel industry and reduction or abolishment of Service and Luxury taxes. The Indian Association of Tour Operators (IATO) has already given a presentation to the Ministry of Tourism (MoT) of pre-budget expectations. IATO has requested MoT for 'industry status' to be granted for the travel and tourism industry. “Apart from requesting an industry status for the travel and tourism industry, we have even requested MoT to reduce or abolish Service Tax for the tour operators,” said Vijay Thakur, President, IATO.

Association of Domestic Tour Operators of India (ADTOI) is also of the opinion that Service Tax and Luxury Tax should be reduced to minimal or abolished completely. “The Service Tax paid by the tour operators is a tedious process and it becomes difficult to convince the end consumers with multiple tax payments involved in a package,” explained Rakesh Lamba,