Tag Archives: Finance Minister

FM’s relief for tourism, aviation & hotels with ECLGS

Finance Minister, Nirmala Sitharaman has announced Emergency Credit Line Guarantee Scheme 2.0 (ECLGS) for the 26 stressed sectors identified by Kamath Committee, which include tourism, aviation, hotels & restaurants. Under ECLGS 2.0, banks would be able to provide collateral-free, fully guaranteed loans to borrowers on capped interest rates. It supports companies with outstanding dues of Rs 50-500 crore as on 29th Feb, and they would be able to borrow up to 20% of their outstanding dues as on 29th Feb, with a loan tenor set at 5 years. Also there will be a one-year moratorium on principal repayment. The scheme will be available till March 31, 2020.

Read More »

New MSME definition includes services sector, shall benefit tourism: Yogendra Tripathi

While the tourism industry was disappointed with the sector not being mentioned in the stimulus package announced by the finance minister, Yogendra Tripathi, Secretary – Tourism, Government of India, has said that the new definition of MSME, which has removed the differentiation between manufacturing and services sector MSMEs, shall benefit tourism as 70-80% of the sector falls under MSME. “Throughout my tenure, I have been hearing from the industry that 70-80 per cent of the stakeholders in tourism fall under the MSME category. The biggest announcement under Atmanirbhar Bharat programme was pertaining to the MSMEs. Hence, we have clarified to the industry that the biggest announcements are there for them as well. The fact that the differentiation of definition between the manufacturing and the services sector MSME, which has been removed and the caps which have been changed for the services sector MSMEs, like tourism sector MSMEs, shall bring benefits. It’s not just the benefits which have been given, but it also further expands the scope of the tourism industry, to be part of the MSME definition and to take the benefits, which are due under the MSME category of Atmanirbhar Bharat announcements. I believe that the industry has started understanding that because they are now bringing out 1-2 difficult areas wherein the tourism industry may not get the kind of benefits it has been expecting. We are bringing up those difficulties to the appropriate authorities to see if we can resolve them, so that more benefits reach out to the MSME tourism industry,” he said.

Read More »

MOT puts forth industry requests to Finance Ministry to avoid losses: Rupinder Brar

Rupinder Brar, Additional Director General, Ministry of Tourism, Government of India, has revealed that they have put forth the industry representation and requests in front of the Finance Minister, so that they can work towards reducing the impact of the COVID-19 outbreak on businesses. “The industry stakeholders need working capital and they are looking at interventions either from the banking sector in easing out of norms, or they will be looking at support through reduction of taxes. These are the things that would leave money in the hands of the industry as of now. We would be carrying out or taking with us the representation of the industry and the thrust would be that the industry needs to survive so that job losses do not happen. I would refer to the honourable PM’s speech to the nation, where he has himself mentioned that we should make sure that we don’t stop wages of anyone. Hence, all the efforts of the Ministry of Finance would be to ensure that no such job losses happen in the tourism and hospitality sectors.”

Read More »

Kerala to cut tax on aviation fuel to 5 per cent for domestic airlines

To promote airlines to extend their service to Kerala, the Kerala government has decided to slash the tax on aviation fuel to 5 per cent from the current 28.75 per cent for domestic airlines. Making the announcement in the assembly during the discussion on the state budget for 2019-20, state’s Finance Minister TM Thomas Issac said that not only airports under the UDAN scheme but also non-UDAN airports would get the new tax breather in the state. “The tax on ATF will be reduced to 5 per cent from the existing 28.75 per cent for domestic airlines operating service from the state airports. A revenue loss of Rs 100 crore is expected through this,” he said. The tax cut is expected to benefit Thiruvananthapuram, Kochi and Kozhikode international airports as the government had already decided to levy only 1 per cent fuel tax from airlines operating service from the newly commissioned Kannur airport. Aviation fuel accounts for a major portion of operating cost for airlines. The tax cut can help become Kerala an attractive destination for various airlines as neighboring states like Tamil Nadu and Karnataka are charging a state tax of 29 and 28 per cent, respectively on jet fuel. The tax cut benefits would benefit only domestic passengers as the international airlines that operate to and from the state have not been charging VAT as per the new GST regime.  

Read More »

Kerala’s budgetary boost to tourism

Kerala Government has allotted Rs 100 crore each for the Alappuzha and Thalassery Heritage Tourism projects in its budget for the year 2016-17. The annual budget was presented by Dr Thomas Issac, Finance Minister, Government of Kerala. Another Rs 400 crore was allotted for improving the existing infrastructural conditions in select tourism destinations identified across the state. A ropeway project was also announced at Ponmudi. For which Rs 200 crore shall be allotted. The budget also proposed development of air strips at Bekal, Wayand and Idukki in order to connect far flung destinations. However the bus trips to Bengaluru and Chennai will cost more now as tax of tourist buses has been increased. Green Tax on old vehicles and goods transport has also been increased by 10 per cent.

Read More »

Luxury Tax threshold limit increased to Rs 1,500

In a bid to simplify tax regime, Delhi Government has announced increase in threshold limit of Luxury Tax from existing Rs 750 to Rs 1,500. “This will reduce tax burden on citizens and tourists and make it easy for small hotels to do business,” said Delhi Deputy Chief Minister and Finance Minister Manish Sisodia. The government has decided to introduce self declaration in Luxury Tax. Assessment of all hotels is compulsory and will be done on random basis. The revenue collection from Luxury Tax has seen an increase of 36.7 per cent. As against last year’s Rs 322 crore of revenue from Luxury Tax, this year will exceed Rs 440 crore is estimated to be collected. Last year, the government had enhanced Luxury Tax from 10 per cent to 15 per cent for all applicable establishment.

Read More »
error: Content is protected !!