FAITH Associations urge CMs for ‘proportionate relief’ on statutory obligations to the tourism industry
Tourism business in India in FY 2021-22 will continue to be highly restricted due to stringent travel requirements, reduced international and domestic connectivity and apprehension of people to travel.
FAITH, the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) have reached out to the Chief Ministers of all states on statutory obligations to the pandemic hit tourism industry and other measures.
FAITH has highlighted that after a devastating financial year in 2020-21, Tourism business in India in FY 2021-22 will continue to be highly restricted due to stringent travel requirements, reduced international and domestic connectivity and apprehension of people to travel. This will heavily impact viability of tourism enterprises and jobs.
With NIL to negligible business expected for tourism, travel and hospitality companies they have requested a complete waiver of the following for FY 2021-22 without any penalties:
- All fixed electricity and other utility charges
- Excise duties
- Property taxes
- Interstate tourist transport taxes
- Waiver of SGST
- Any other local taxes
- An automatic renewal of all licenses, permits, permissions which were expiring in FY 2021-22 without any financial charges or penalties.
- Industry status for tourism travel & hospitality
- Refund of unutilised GST credit lying with state governments to the tourism, travel & hospitality players to get immediate liquidity.
- Reduction of vat on state aviation turbine fuel and Special reduction of state level airport taxes to incentivise travel
- Reduction of license fees for performance & events to boost state MICE
- For unorganised workers working with the tourism sector who don’t have the safety net of PF/ ESI, coverage of sustenance wages and medical condition as a grant with ‘direct transfer’.
- Special recognition of tourism travel and hospitality micro small & medium enterprises choosing work from home services as an additional option under the relevant provisions.
- Permission to leverage open spaces such as terraces and adjacent areas for F&B to enable compliance with social distancing norms while also enhancing the eating out experience to stimulate the industry demand.
- State level tourism task force along with representatives all FAITH member associations.
- Liquor VAT under GST and reduction of state liquor VAT / excise to stimulate overall tourism inflow.
- A mandatory vaccination of all tourism front line staff 18+ to be able to create confidence in the tourists travelling to the state
- A tourism consumer demand promotion plan and an incentive structure for tourism, travel & hospitality companies.
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