In the post pandemic year 2021, while the country is returning towards normalcy and preparing its ‘Budget’ for the FY 2021-22 the travel and tourism sector first and worst affected, is desperately looking for some relief. While sharing industry expectations on behalf of TAAI, President Jyoti Mayal says that the Finance Ministry should outlay plans to enhance and boost travel and tourism by ensuring adequate support in ease of doing business.
Mayal stated: “We believe the ‘Budget 2021’ should be focused more on spendings to enable economic growth, what better area to spend in than tourism to generate more cash flow and earnings to enable enhancement of infrastructure.”
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One India, One GST
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LTC benefits (not utilised this year) to be carried forward in the coming two years.
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Expenses made for travel/tourism should be exempted from income tax for the next two years.
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10% SIES credit to be adjusted under income tax.
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Structured Insurance Mechanism to secure the future of travel agents.
According to Mayal, TAAI has already appealed for having a uniform GST across India whereby input tax credits can be taken for services utilised across the country. The GST for tour operators should be at 1.8% with full setoff, being 18% on an average margin of 10%.
Interstate credits of GST are not available to travel agents and tour operators on IGST and the same should be considered at par which shall not only benefit the Corporates but the consumers are large, similar being with airlines on the point of departure.
“We are expecting the Finance Minister to ensure LTC benefits not utilised this year due to the pandemic should be permitted to be carried forward in the coming 2 years. Further to boost the economy all expenses made for travel, tourism, MICE, adventure, domestic and religious travel, by the tax payer should be fully exempt from income tax for the next 2 years,” says Mayal.
“The FM should also ensure 10% SIES credit to be adjusted completely under income tax. To ensure growth in tourism and all incomes from foreign exchange earnings should be given a tax holiday for a period of 2 years. TCS too should be rescinded as it serves no purpose of tax collect and is only adding compliances of our members,” she added.
Jay Bhatia, Vice President of TAAI stated that Travel and Tourism trade should be granted an Industry status and be included in the concurrent list on a unified basis across the country. This shall help to produce high quality service levels. All licenses and standardisation of regulations, processes, payment schedules, skills and knowledge development shall get a boost.
