The hospitality and tourism sector, one of the biggest revenue generators, is pinning its hopes on the Budget for providing service tax exemption and supportive policies to encourage domestic as well as foreign tourists.
Palm Beach General Manager and Hotel and Restaurant Association of Andhr Pradesh general secretary Sandeep Reddy said implementation of the Good and Services Tax (GST) will bring in a uniform tax structure and further improve the industry.
“The high tax in the Indian hospitality sector is a hindrance to the growth of the sector and competitiveness in comparison to other destinations. We expect the Budget to address this issue and the implementation of GST to drive a turnaround for the industry,” he said.
Seshagiri Mantri of Vihar Hospitalities said hospitality and tourism sectors are among the largest employment generators and contribute close to 7.5 % of GDP.
“The sectors are saddled with multiple layers of tax including VAT, service tax, luxury tax and ranges from 20 % to 30 %.
“A lower tax rate for hospitality business and supporting small owner-friendly policies will go a long way in supporting domestic tourism,” he added.
