Tourism and hospitality sector affected by Corona, what relief will be provided by Finance Minister’s box?

Tourism and hospitality sector affected by Corona, what relief will be provided by Finance Minister's box?

Almost all areas have been affected by the Kovid-19 epidemic. One of the areas that suffered the most during the Corona period is the tourism and hospitality sector. All services were disrupted last year, from air travel to railways. In view of this, the tourism and hospitality sector has made several recommendations from the government, hoping for the upcoming general budget, so as to overcome the outbreak of the Kovid-19 epidemic.

National Tourism Council should be formed

The Federation of Indian Tourism and Hospitality Associations (FAITH) said in a statement that a National Tourism Council of Chief Ministers should be constituted under the chairmanship of the Prime Minister, including the Tourism Minister, to ensure a shared vision of tourism between the Center and the states. Join. The federation has called for giving industry status to tourism across the country.

Income tax exemption can be given for traveling in India

The acting CEO of the federation, Ashish Gupta, had said that “The members of FAITH are collectively in touch with various members of the government and they are expected to get appropriate relief in the general budget”. He said that FAITH has also recommended several tax reliefs for the tourism sector, including making export income tax-free and giving income tax exemption for travel to India.

Gurbakhsh Singh Kohli, Vice President of Federation of Hotel and Restaurant Associations of India (FHRAI) said, ‘The hospitality industry has been badly hit by the epidemic in the last few months and the upcoming Union Budget will determine which way we will go from here. The industry has high expectations from the government. Since the industry has not received much help so far, the FHRAI expects the hospitality industry to be given special attention in the upcoming budget.

There may be a 75 percent reduction in budget allocation

However, a senior finance ministry official had estimated that the government could cut the budget allocation for foreign trips by 75 percent in the next financial year. In the Finance Ministry, Joint Secretary Madnesh Kumar Mishra said that at a time when all activities are going on online through video conferencing, the government can cut ‘less significant expenditure’. Mishra was speaking at the event organized by XLRI.

‘Hospitality is an industry that has been going on for a long time. The hospitality industry is one of the many industries that have been severely affected by the ongoing Coronavirus epidemic. With the 2021 budget, we hope that the government will make the GST of tourism and hospitality a little easier and allow restaurants to take input on their purchases. Hotels and restaurants are already exploring new ways to reach more people in their places and services, and this trend is expected to continue in 2021 as well. The hospitality and hospitality sector is therefore looking for practical policies, lower taxes, and easier compliance measures in the Union Budget coming on February 1. The reduction in GST rates on services provided by hotels will help. For example, the GST on room bookings should be reduced from 18 percent to 12 percent, which will encourage people to book hotels and improve hotels and help make Indian hotels more competitive. ‘

– Mr. Sandeep Singh, Rubystone Hospitality

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