Govt for free movement of inter-state tourist vehicles
Tourism minister Ambika Soni has asked the empowered committee of state finance ministers to have a uniform state-level tax structure and allow free movement of inter-state tourist vehicles to attract foreign tourists.
By Nirbhay Kumar & Vikas Bhardwaj, ET Bureau |
NEW DELHI: Tourism minister Ambika Soni has asked the empowered committee of state finance ministers to have a uniform state-level tax structure and allow free movement of inter-state tourist vehicles to attract foreign tourists.
In a letter to its chairman Asim Dasgupta, she expressed concerns that the number of foreign visitors have a negative growth and there is an urgent need to put in place confidence building measures in order to counter this trend.
States are expected to take up these issues in the committee's meeting next week.
The industry (hoteliers and tour operators) had made some useful suggestions and sought incentives in the form of rationalisation of passenger and road tax, rationalisation of luxury tax, enhancement of floor area ratio and seamless travel of tourist taxies, the letter said.
Ms Soni had met the National Tourism Advisory Council, an industry body last month to discuss measures to check the recessionary trend.
Tourist inflow has been recording a negative growth since November 2008 due to the global slowdown and the Mumbai terrorist strike. Industry sources said the number of foreign visitors to the country fell by 22% in December 2008 compared to the same month of previous year.
Responding to an alarming situation, the tourism ministry has asked the various state governments to bring the luxury tax rate to an uniform level of 4% on the actual room tariff. Luxury tax, which is a state subject, in the country varies from 5% to nearly 20%.
For example, Punjab levies a luxury tax of 8% over and above the tariff. Delhi charges 12.5% luxury tax on the published room rental. In various states such as Uttar Pradesh, luxury tax is levied on actual or negotiated rental. Some states, however, do not levy any luxury tax on room rentals.
Tourism ministry along with hoteliers and tour operators are planning to launch various schemes including free air passage for the companion of a foreign tourist to increase the inflow of foreign tourists to the country. The ministry has also started extensive campaigns to sell India as long-term tourist destination.
In a letter to its chairman Asim Dasgupta, she expressed concerns that the number of foreign visitors have a negative growth and there is an urgent need to put in place confidence building measures in order to counter this trend.
States are expected to take up these issues in the committee's meeting next week.
The industry (hoteliers and tour operators) had made some useful suggestions and sought incentives in the form of rationalisation of passenger and road tax, rationalisation of luxury tax, enhancement of floor area ratio and seamless travel of tourist taxies, the letter said.
Ms Soni had met the National Tourism Advisory Council, an industry body last month to discuss measures to check the recessionary trend.
Tourist inflow has been recording a negative growth since November 2008 due to the global slowdown and the Mumbai terrorist strike. Industry sources said the number of foreign visitors to the country fell by 22% in December 2008 compared to the same month of previous year.
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Responding to an alarming situation, the tourism ministry has asked the various state governments to bring the luxury tax rate to an uniform level of 4% on the actual room tariff. Luxury tax, which is a state subject, in the country varies from 5% to nearly 20%.
For example, Punjab levies a luxury tax of 8% over and above the tariff. Delhi charges 12.5% luxury tax on the published room rental. In various states such as Uttar Pradesh, luxury tax is levied on actual or negotiated rental. Some states, however, do not levy any luxury tax on room rentals.
Tourism ministry along with hoteliers and tour operators are planning to launch various schemes including free air passage for the companion of a foreign tourist to increase the inflow of foreign tourists to the country. The ministry has also started extensive campaigns to sell India as long-term tourist destination.
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