Industry expects continuity in tourism-friendly policies (Comment)
The travel and tourism industry is a crucial contributor to the growth of the Indian economy with a powerful multiplier impact on employment generation and we are hence confident that the Union Budget introduced by the government will strengthen the industry with continuity of its tourism friendly policies to give a fillip to India's inbound, domestic and MICE segments.
We look forward to increased focus and sustained delivery on key initiatives like Ude Desh ka Aam Nagrik (UDAN) aimed at enhancing the regional connectivity and affordable air travel, Heritage City Development and Augmentation Yojana (HRIDAY), integrated development of pilgrimage destinations through Pilgrimage Rejuvenation and Spirituality Augmentation Drive (PRASAD), increased allocation towards enhancement of the e-Visa initiative to include additional countries, development of new tourism circuits and attractions, along with increased focus on infrastructure - roads, railways, airports, waterways and sanitation to catalyse growth.
Given the recent developments and challenges faced by the aviation sector, we believe there is an urgent need for a holistic view and corrective measures to be taken in the interest of the larger tourism, hospitality and business environment.
Our wish list also includes clarifying the issue of Air Travel Agents being subject to Tax Collection at Source. The amendment of the proviso to section 16(2) in claiming input tax credit on the tax charged by the airline will also help in providing for the specific scenario of payment made by corporates or registered passengers to a travel operator.
And finally by focusing on Corporate Tax for the FY 2019-20, we look forward to a reduced corporate tax structure of 25 per cent across the board. IANS