Make Travel Expenses fully exempt from IT to revive tourism – TAAI urges Govt ahead of Union Budget 21
TAAI, Travel Agents Association of India has called for implementing IT exemption for all travel and tourism-related expenses borne by Indian citizens for the next two years in order to encourage more people to travel and thereby boost the tourism economy of the country which is fighting for survival in covid times.
Jyoti Mayal, President, TAAI, speaking about her expectations on the Union Budget 2021 stated, “We are expecting the FM to ensure LTC benefits not utilized this year due to the pandemic should be permitted to be carried forward in the coming 2 years. Further, to boost the economy all expenses made for travel, tourism, MICE, adventure, domestic and religious travel, by the taxpayers should be fully exempt from income tax for the next 2 years.”
In line with the One India, One Tax concept, TAAI has once again appealed for a uniform GST across India. It urged the Govt that the GST for tour operators should be at 1.8% with full setoff, being 18% on an average margin of 10%. Also, an appeal is made for Interstate credit of GST for tour operators and travel agents on IGST and the same should be considered at par which shall not only benefit the corporates but the consumers at large.
There was a call that 10% SEIS credit be adjusted completely under income tax. A tax holiday for a period of 2 years should be announced on all incomes from foreign exchange earnings to ensure growth in tourism.
TAAI has also asked for a complete rollback of the TCS so that the travel agents and tour operators are not inconvenienced with additional compliance.
Jay Bhatia, Vice President of TAAI stated that travel trade should be granted an industry status and be included in the concurrent list on a unified basis across the country. This shall help to produce high-quality service levels.
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