Union Budget 2010-11 neglects travel and tourism industry

The aviation and tourism industry was once again given a miss in the Union Budget 2010-11 which was presented today by Finance Minister Pranab Mukherjee. While the tourism outlay has been increased to Rs 1050 crore for 2010-11 as against last years Rs 950 crore, key demands of the travel industry like export status for the industry, exemption of Service Tax on Inbound Tour operators; inclusion of ATF in ‘Declared Goods’ list for uniform taxation; abolition of Fuel Surcharge to make air travel affordable within the country, rationalisation of state transport taxes and the recommendation for the formation of a National Commission for Tourism under the leadership of the Prime Minister were neglected. The only silver lining in the budget was the announcement of investment linked deductions under the Income Tax Act to companies developing hotels (two star and above). Overall the Union Budget focused mainly on agriculture, rural development and infrastructure development.