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"Tour operators have little to rejoice about budget outcome, said Subhash Goyal, President, Indian Association of Tour Operators. We had expected the budget to bring some relief to our mounting woes by reducing the service tax.
It is unfortunate that the government is systematically killing the goose that lays the golden egg. This taxation part has made India very cost prohibitive, he said.
Tourism sector is estimated to contribute more than 6% to the GDP and more than 9% to the employment. “Present service tax level exacerbated by high fuel price and swine flu threat will further push down the demand for India holidays. In the present budget the inclusion all AC restaurants and cafes more than 2,000 square feet to pay service tax is also adding to the woes,'' Goyal said.
