FAITH lob­bies for 5% GST for tourism

For FAITH, the sin­gle point agenda is to get the rate of Goods and Ser­vices Tax (GST) for tourism un­der the low­est slab pos­si­ble, re­veals Sarab Jit Singh, Vice Chair­man, FAITH.

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The Fed­er­a­tion of As­so­ci­a­tions of In­dian Tourism & Hos­pi­tal­ity (FAITH) has held mul­ti­ple dis­cus­sion meet­ings with all its mem­ber as­so­ci­a­tions re­gard­ing GST. “Fi­nally, we have come to the con­clu­sion that we are seek­ing the low­est slab pos­si­ble for tourism sec­tor. Ear­lier, we were ask­ing for six per cent, but now we are re­quest­ing for five per cent. We have given req­ui­site ex­am­ples of other coun­tries, where the GST is low. We have given a list of 20 coun­tries, which have kept tourism in the low­est slab for GST, and are record­ing huge num­ber of tourist ar­rivals,” Singh says. FAITH has also urged the gov­ern­ment to keep the for­eign ex­change trans­ac­tions un­der tourism tax free. “Our sec­ond de­mand is that any trans­ac­tion in for­eign ex­change by the tourism sec­tor should be on zero rat­ing. In fact, it should be the same for all tourism or­gan­i­sa­tions, be it ho­tels, tour oper­a­tors, trans­port oper­a­tors or con­ven­tion providers. That will give us in­cen­tive to make In­dian tourism prod­ucts more com­pet­i­tive world­wide and win busi­ness, which is go­ing to other coun­tries. The third thing which we have asked is that the def­i­ni­tion of these ser­vices un­der GST should be amended so that the ser­vices pro­vided to for­eign tourists in In­dia should be treated on a par with the ser­vices pro­vided out­side In­dia and given all ben­e­fits,” he adds.

FAITH has reached out to all states and cen­tral gov­ern­ment of­fi­cials and min­is­ters and Singh hopes that things will pan out in favour of tourism.

The as­so­ci­a­tion is also in­volved in the up­com­ing In­cred­i­ble In­dia Global Tourism Mart (IIGTM), sched­uled from Fe­bru­ary 1-4, 2017, in Delhi. “IIGTM would most prob­a­bly be in­au­gu­rated by the Prime Min­is­ter at Vi­gyan Bhawan. Other things are be­ing worked upon in­clud­ing the ho­tel book­ings and the in­vi­ta­tions for for­eign tour oper­a­tors. MOT is con­sid­er­ing bring­ing all states and union ter­ri­to­ries to par­tic­i­pate, to not only show­case their tourism po­ten­tial, but also their cul­ture and hand­i­craft. The event will fo­cus on both in­bound, out­bound and do­mes­tic tourism, and we are look­ing for­ward to around 400 hosted buy­ers as well as in­ter­na­tional me­dia. For­eign tour oper­a­tors will be taken on Fam tours around the coun­try, which is also be­ing worked out.”.

Sarab Jit Singh Vice Chair­man FAITH

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