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The Travel Agents Association of India has requested the Finance Minister to grant export industry status to the tourism industry in India and rationalise the high taxes imposed on it and give the bleeding industry some respite. We have requested the Ministry of Tourism to ask State governments to bring the luxury tax down to 5 per cent. Further, we have also given the Government the following suggestions:

• Exempt travel agents from service tax for at least for five years. A differential of taxation could be considered, for inbound, outbound, and domestic agents.

• Restore the benefits of Section 80 HHD of the Income-Tax Act to the tourism industry in its original form. This is needed to set the tourism industry on an aggressive growth path to draw foreign tourists into the country.

• Reduction of taxation on Aviation Turbine Fuel as it directly affects airfares.

• Increase the service tax abatement for domestic/adventure tour operators.

• Section 194-I of the Income-Tax Act should not be applicable on hotel rooms booked by tour operators and travel agents, as these rooms are booked only for short stays.

Rajji Rai, President, Travel Agents Association of India

More Stories on : Budget | Tourism

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