Tourism body asks government to provide GST waiver to prevent mass bankruptcy in the sector

A Travel, Hospitality and F&B collective of the Entrepreneur’s Organisation (EO) has requested the government to provide goods and services tax (GST) waivers among other demands to revive tourism in India. In a nine-point demand letter, the body said it requests the government for immediate survival measures to prevent mass bankruptcy and crores of unprecedented layoffs in the hospitality and travel sector that normally contributes to almost 10% national GDP, due to the crisis triggered by the COVID-19 pandemic.

Drafted in consultation with top industry leaders, the letter requests an immediate rebate to save the tourism sector and crores of jobs associated directly and indirectly with the industry.

“Hotel business has been brought down to almost nil revenues in this time”, reads the letter. The following are the demands presented by the EO collective to the government for consideration:

  1. Deferment of all statutory liabilities for a period of 12 months. 
  2. Deferment of loan EMIs for the period of 12 months and restructuring of the loan. 
  3. Waiving the property taxes for the financial year 2020-21. 
  4. Grant/permit to use the GST collected for a period of 12 months. 
  5. Subsidies employment for 3 months by government contribution per employee of 50% of the salary. 
  6. To restructure and give a discount on taxes applicable to the customer for a period of 1 year so that they will have some comfort. 
  7. To reduce the Visa cost to 50% and allow for Visa on arrival 
  8. To consider restructuring the MSME Act towards helping the hotel industry to gain the benefit of the Rs 20 lakh crores package as announced recently. 
  9. To give power bill waiver for over a period of 3 months and later to consider a discount in tariff for a year.

Since the lockdown, the Travel, Hospitality and F&B body of Entrepreneur’s Organisation India has been requesting for a Tourism Aid & Restructuring Package (TARP) with various government authorities including the Union Tourism Minister, Chief Ministers of all the states, Tourism Secretaries and CEO of NITI Aayog. The organization has also released a video titled ‘The Hospitality Needs’ requesting the government’s attention to the issue of the troubles in the tourism industry. The video can be watched here: The Hospitality Needs.

Entrepreneurs’ Organization (EO) is a global, invitation-only network founded in 1987 whose objective is to lead entrepreneurs onto a path of greater business and personal fulfilment through direct peer-to-peer learning.