New Delhi [India], Jan 25 (ANI): With the Union Budget scheduled to be presented in a week's time, the hospitality sector is anticipating reforms that will benefit the industry and the luxury segment.
With the introduction of the Goods and Services Tax (GST) in July last year, the industry hailed the much-needed impetus in the form of tax relief.
With hotels being the main component in the travel segment, the tourism industry is looking forward to a much-needed tax rebate.
Here are some the pre-budget expectations from the sector:
"With the upcoming Union Budget for 2018-19, we are looking forward to reforms supporting the industry. While the government is aggressively marketing brand India globally, it is imperative to focus internally and address issues around taxation, infrastructure and inconsistent regulations imposed by various states to achieve the potential of these industries," said executive director, Bird Group, Dr. Ankur Bhatia.
"We also hope the Union Budget will empower each of the industries to take full advantage of varied opportunities ahead," added Bhatia.
Dr Amit Modi, CEO of The Bristol said, "The biggest expectation that the industry has from the government, at this time, is to take on an initiative on the long overdue demand of the giving the hospitality industry the status of the infrastructure sector. Primarily, in the last couple of years, we have seen the kind of development that took place in the aviation, roads, transport and shipping sectors wherein, the connectivity and infrastructure of the country have improved. Also, the relationship with our neighbouring countries and the rest of the world has improved."
"The government should rationalize the GST for the luxury segments and try to boost the budget hotels for bringing down the GST on room accommodation up to Rs. 7500 by 12 percent. The step taken by the government to rationalize the GST on F&B is welcomed and we are looking forward to a more innovative adjustment by the government in the coming budget," added Amit Modi.
"For the upcoming budget, I am hopeful that the government will focus on tourism sector especially hospitality. Tourism has been a key contributor to the economy, however considering the diversity of our country it still has a lot of potential to grow. Introduction of some large scale state events or festivals can boost the tourism in the country," believes general manager Radisson Noida, Ramendra Pratap Singh.
Joint Managing Director MBD Group, Sonica Malhotra said, "Government shall introduce measures to boost investment in hospitality industry like introducing the tax incentive scheme for making investment in Hotels. It being heavy capital intensive there is a need of low cost funding."
"Govt. may now like to look into making direct taxation simpler so that it has less complex and with no ambiguity. This would encourage better tax collection, compliance and less litigation. We look forward that Government will encourage Tourism and Hospitality segment in coming budget," she added.
The last full-fledged budget of the Narendra Modi-led government will be presented in Parliament on February 1.