Hike in taxes disappoints Goa hotel industry
March 2nd, 2011 - 6:56 pm ICT by ANI
Calangute (Goa), Mar.2 (ANI): Representatives of the hotel industry in Calangute in Goa have expressed their disappointment with the hike in service tax proposed in the annual budget calling it a severe blow for the hospitality industry that will adversely affect tourists, as holidays in Goa will become costlier.
Ralph D’Souza, spokesperson Travel and Tourism Association, Goa, on Wednesday said: ” The mainstay of the Goan economy is the hospitality industry and tourism, and almost every hotel, except some guest houses and dormitories will be affected by this.”
” The reason for this is almost every hotel will have a tariff of more than 1,000 rupees. They have to do this because the tourist season is Goa is during the fair and there is no tourism during the monsoons,” he said.
” So, apart from whatever is spent in this season, enough has to be put aside in order to meet the expenses during the rainy season. This is going to be a severe blow to the industry,” he added.
According to the proposed service tax slab, traveling by air, staying in hotels and eating at restaurants in Goa will become costlier for tourists.
D’Souza said that hoteliers already pay heavy local duties and the new tax slabs will increase their difficulties.
While presenting the annual budget on Monday, Finance Minister Pranab Mukherjee, had proposed a 10 percent service tax with abatement of 50 percent on hotel accommodation in excess of 1,000 rupees a day.
Another 10 percent service tax will be imposed on air-conditioned restaurants serving liquor, with an abatement of 70 percent.
D’Souza urged the Indian government to reconsider the proposed service tax bracket.
“I request them to roll back and to consider at least leaving Goa out of it because almost everybody is affected here, and this is the mainstay of the Goans all of them being employed in this industry, and secondly, tourism is the biggest revenue earner for the state government. If part of these taxes are going to go to the Center, then even the state government budget is going to go on a spin,” he said.
Goa’s beaches, culture, architecture and heritage attract millions tourists annually from across the globe. (ANI)
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