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Study on impact of taxation on tourism sector

Press Trust of India  |  New Delhi 

"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," Tourism Minister Chiranjeevi said at a meeting with a delegation of the Indian Association of Tour Operators (IATO) here.

President of IATO Subhash Goyal highlighted the problems and issues being faced by the tourism industry.

The delegation requested the 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 and Nepal who are not paying any taxes and the business for India is being routed through them.

Goyal said, "If two things are achieved then tourism will go up by at least 50 per cent, if not 100 per cent, which include 'visa on arrival' and the second is to give export industry status to tourism industry."

He further said that 'visa on arrival' to be issued for the tourists from all tourism friendly countries and wherever this is not possible, E-visa should be issued for travel to India.

First Published: Tue, December 18 2012. 18:55 IST