The Union Budget 2009-10 presented today by Pranab Mukherjee, Finance Minister of India was disappointing for the stock market, but provided a little bit of cheer for the 'Aam Aadmi' (common man). While the budget has by and large bypassed the tourism industry with no specific and worth talking about benefits, it has scrapped the Fringe Benefit Tax (FBT), which might produce a marginal direct and indirect impact on the sector.
FBT is any privilege, service, facility or amenity, directly or indirectly received by an employee from a company. Benefits like travel and tours, entertainment, provision of hospitality, conference, sales promotion including publicity, use of hotels, boarding or lodge, aircraft, festival celebrations, use of health clubs, scholarships, free or concessional tickets for private journeys etc. were liable for FBT.
Talking about the benefits of scrapping FBT, Ashwini Kakkar, Executive Vice - Chairman, Mercury Travels Pvt. Ltd. said, “Withdrawal of FBT in the latest Union Budget will definitely result in growth of MICE industry in the tourism sector of India.” Highlighting the other marginal benefits by FBT, Rajiv Kohli, Vice Chairman, |