Tourism Breaking News
While reacting on the Union Budget 2021-22, which was announced today, Pronab Sarkar, President Indian Association of Tour Operators (IATO) expressed his disappointment that “We had looked forward to this year’s Budget 2021-22 with lot of expectations for the tourism sector getting due recognition with some positive announcements by the Government by way of extending some relief and benefits to the tour operators based on the foreign exchange earnings and releasing of SEIS for 2019-20, which has been kept on hold for the tourism sector.
“We were hopeful that our Government will understand the problems, the tourism industry is facing due to Covid-19 since March 2020 and struggling for survival and we hoped that some relief measures would be taken by the Government to help the highly stressed tourism sector. But to our dismay, there was even no mention of tourism in the Union Budget announcements, inspite of the fact government re-assuring Sabka Saath, Sabka Vikas aur Sabka Vishwas, but this is not in the case of tourism industry,” he said.
In its recommendations made to the government, IATO has requested a) release of SEIS Scrips for 2019-20, Extension of service exports from India scheme (SEIS) for the tourism industry for the next 5 years in the new foreign trade policy 2021-25 and increase SEIS percentage from 7% -10%, b) to exempt GST on foreign exchange earnings, c) Tourism industry to be treated as a deemed exporter at par with IT Industry under export of services, d) Removal of cascading effect of GST on Tourism Industry, e) Withdrawal of tax collection at source (TCS) for the foreign tourists, f) Removal of GST on services provided outside India to foreign tourists,
“None of our above demand has been considered and tourism is not mentioned in the Union Budget,” said Sarkar.
