MOT calls for tourism-friendly policies
Sultan Ahmed, Minister of State for Tourism, has urged the state governments and Union Territory administrations to follow tourism-friendly policies.
In
a recent written reply to the Lok Sabha, Sultan Ahmed Minister of State for tourism, highlighted various incentives that have been announced, while pressing on the need for the states to undertake more tourismfriendly policies.
Sultan Ahmed in his written statement also high- approach for promoting hotel projects, rationalisation of taxes etc for the growth of tourism sector in the country,” said Sultan Ahmed, Minister of State, Ministry of Tourism.
Ahmed also highlighted several incentives that had already been announced. The first initiative he highlighted was the Five-Year Tax Holiday for 2, 3 and 4-star category new hotels located in all UNESCO declared ‘World Heritage Sites except in Mumbai and Delhi, which is operational till March 2013. He also highlighted the investmentlinked deduction under Section 35 AD of the Income Tax Act extended for new hotels of 2-star category and above anywhere in India to facilitate the growth of tourist accommodation in the country. He was also quick to mention that the Reserve Bank of India (RBI) had de-linked credit for hotel projects from Commercial Real Estate (CRE), thereby enabling hotel projects to avail credit at relaxed norms and reduced interest rates. Moreover, External Commercial Borrowing (ECB) norms are relaxed by the Ministry of Finance to solve the liquidity crunch being faced by the hotel industry for setting up new hotel projects, he said.