Travel industry seeks tax break, aid in Union Budget
MUMBAI: Ahead of the Union Budget 2021, the apex body of travel agents – Travel Agents Association of India (TAAI) – has suggested that the government outlay plans to enhance and boost travel and tourism by ensuring adequate support in ease of growing the industry.
According to TAAI, Budget 2021 should allow leave travel concession (LTC) benefits, which could not be utilised owing to the pandemic, to be carried forward over the next two years. It also stated that it expects the government to fully exempt income tax for two years for all expenses made for MICE (meetings, incentives, conferencing and exhibitions), adventure, domestic and religious travel.
In its recommendation to the ministry, TAAI stated that a structured insurance mechanism is required to secure the future of travel agents against principals, viz a viz securing all payments of consumers and travellers. “The proposals on underwriting by the government, towards all airline operators to and from India must also be secured in some form,” said the association.
Jay Bhatia, vice president of TAAI stated that travel and tourism trade should be granted an industry status and can be included in the concurrent list across the country which will help to produce high-quality service levels. “We have requested that a single employee benefit or security policy benefit should be adopted under one proviso that will take care of labour welfare, industrial safety and health of self and maintain one-wage code with Central and state governments,” Bhatia said.
“There is a need for greater collaboration between various stakeholders, be it the industry or the government, to create relevant policies and schemes for this sector,” said Dhruv Shringi, co-founder and CEO, Yatra.com.