Union Tourism Minister Subodh Kant Sahay will meet Prime Minister Manmohan Singh tomorrow to seek his intervention in reducing taxes in the tourism sector. Sahay along with senior officials including four secretaries from the Ministries of Finance, Civil Aviation, External Affairs and Surface Transport will meet Singh to ensure rationalisation of the tax structure for development of the tourism sector in a coordinated manner with the involvement of all ministries concerned. “Currently the taxation on tourist packages is about 27 per cent which include luxury tax, services tax, road tax and air ticket tax in the country which is one of the highest in the world,” said a senior Tourism Ministry official.
There is a constant demand for reduction of various taxes in the tourism sector as the higher tax structure is adversely affecting the industry, he said.
Sahay will also seek significant enhancement in fund allocation for the sector.
Besides senior officials, a delegation of stakeholders in tourism including hoteliers and tour operators will also accompany Sahay to seek the PM”s intervention to give a boost to the tourism industry in the country.
The Tourism Minister will make a presentation of a blueprint to bring all states on a common platform for the development of tourist destinations through public-private participation.
The official said Sahay will seek changes in policy relating to development of tourism infrastructure and will also emphasise on a competitive tax regime both at Central and state levels.