The tourism sector that was expecting some tax relief has expressed disappointment with the Budget.
The Indian Association of Tour Operators (IATO) is upset over the neglect of tourism sector in the Budget. Tour operators have little to rejoice, said Subhash Goyal, President, IATO.
“We expected the Budget would bring some relief to our mounting woes by reducing the service tax as this is the only one special request we have been making since the last few years. But successive Governments have only ensured that the tourism sector is not given any relief,” he said.
Tour operators feel that taxation has made India cost prohibitive. This sector is estimated to contribute more than 6 per cent to the GDP and more than 9 per cent to employment. “Present service tax level is exacerbated by high fuel price. In the present Budget, the inclusion of all AC restaurants and cafes of more than 2,000 sq ft to pay service tax, will add to woes,” Goyal added.
Similarly, the increase in import duty on high-end motor vehicles from 75 per cent to 100 per cent would also negatively impact the sector and retard the easy movements of tourists. “However, in this Budget there is some high plan allocation for infrastructure which will benefit tourism. We have to, however, see how far all these schemes are implemented,” said Goyal.