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Tourism ministry seeks tax incentive from Budget

Tourism ministry seeks tax incentive from Budget
PTI
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First Published: Tue, Jun 23 2009. 03 25 PM IST
Updated: Tue, Jun 23 2009. 03 25 PM IST
New Delhi: Aiming at boosting the tourism sector, the union tourism ministry will seek major tax incentives for hotels and restaurants including exemption of service tax and excise duty in the budget.
The ministry also wants rationalisation of import duty on adventure sports equipment to promote adventure tourism in the country.
Tourism minister Kumari Selja, who is scheduled to meet finance minister Pranab Mukherjee this week, has finalised the blueprint to be submitted to him for the budget proposals for the growth of the sector, sources in the ministry said.
There is also a proposal for exemption of service tax for inbound tour operators on their foreign exchange earnings.
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The sources said Selja would submit the detailed proposals to the finance ministry seeking various tax incentives for the sector.
The ministry has also sought inclusion of hotels in list of infrastructure products like airports, railways and sea ports. If this measure is adopted, all new hotel projects will be able to avail the benefit of tax deductions of 100% with respect to profits and gains for a period of 10 years.
“This will help in channelising huge investments of about Rs50,000 crore in the tourism sector in next 3-4 years and quickly bridge the shortfall in hotel accommodation. This will also help in lowering room tariffs in the country,” said a sources.
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First Published: Tue, Jun 23 2009. 03 25 PM IST