Union Budget 2023-24: IATO expresses happiness on tourism being mentioned

Finance Minister Nirmala Sitharaman also mentioned that large potential for tourism must be taken up on mission mode, which is very encouraging

For the first time, the Finance Minister has, in the beginning of the budget, addressed the importance of tourism in India and recognised its potential for growth in employment generation, said Rajiv Mehra, President, Indian Association of Tour Operators. 

In her address, Finance Minister Nirmala Sitharaman also mentioned that large potential for tourism must be taken up on mission mode, which is very encouraging. She also mentioned that 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism.

Besides the above, she also mentioned about Public Private Partnership in tourism to be taken up in earnest; 50 additional Airports / Heli ports to be developed to encourage Last Mile Connectivity; Rs 79,000 crores for 100 last mile Railway Projects; to give a boost to Dekho Aapna Desh and Swadesh Darshan Scheme;  tourism infrastructure facility to be developed in villages, specially in the border areas; and One District, One Product to be in focus, which will be helpful in the growth of domestic and international tourism to India, said Mehra.

Some of the IATO members who do outbound tourism business will have to close their business as Tax Collection at Source (TCS) has been proposed to be increased from 5% to 20%. This needs to be rolled back immediately, the organisation said. 

However, none of the sector's demands, like rationalisation of GST on tourism industry, exemption of GST on foreign exchange earnings and refund of tax on shopping under Tax Refund to Tourist (TRT) Scheme on shopping etc. for which there is already a provision in GST Act, have been considered, added Mehra. "Government should consider our demands sympathetically which are very important for revival of tourism post-Covid Pandemic," he asserted.



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