Comprehensive Study on Impact of Taxation on Tourism Sector

Union Tourism Minister  Chiranjeevi has announced that his Ministry will conduct comprehensive study on impact of taxation on tourism sector.
 
 Speaking to a delegation of the Executive Committee of Indian Association of Tour Operators (IATO) in New Delhi  the Minister said “The Ministry will immediately conduct the study of comparison of the impact of excessive taxes on Tourism Industry viz-a-viz Export Industry and also the comparative analysis on the tax structure on Indian Tourism Industry with the competing neighbouring countries”.

Earlier during the meeting, the president of IATO Shri Subhash Goyal highlighted the problems and issues being faced by the tourism industry. The delegation requested the Tourism Minister that wherever Visa on Arrival is not possible, E.visa should be issued for travel to India. The delegation also stated that Indian Tour Operators are being discriminated as the export industry is exempted from Service Tax whereas the Tourism industry is not. This is resulting in discrimination not only against the exporters but also against tour operators in neighbouring countries like Sri Lanka, Nepal etc. who are not paying any taxes and the business for India is being routed through them.

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