India’s travel and tourism industry, among the worst casualties of the Covid-19 pandemic now in its third year, expects the government to announce a raft of incentives and relief measures and increase the budgetary allocation for the tourism ministry in Budget 2022.
The industry has asked the government to consider a waiver of e-visa fees for all foreign tourists in the financial year 2022-23 to support a revival of travel and tourism. It also wants tourism earnings to be treated on par with exports.
The Travel Agents Association of India has urged the government to adopt a ‘One India, One Tourism’ approach to the industry in the Budget including a one-tax structure.The industry body said this would require both the central and state governments to work in tandem and agree to move tourism to the concurrent list of the Constitution from being a largely state subject.
It added that such a move will help the sector receive the status of an industry and become more structured.
The industry body also asked the government to at least double the outlay of the tourism ministry. In 2021-22, the budgetary allocation for the ministry was cut to Rs 2,026.77 crore from Rs 2,500 crore.
Online travel platforms like MakeMyTrip and Ixigo have suggested that the government extend leave travel allowance (LTA) exemption limit for taxpayers to boost domestic tourism.
Leave Travel Allowance (LTA) is provided to employees to cover expenses when travelling on leave from work.
Most employees were not able to make use of the allowance in the past two years because of travel restrictions imposed by governments during the pandemic.
0 Comments