New Delhi, June 26: Aimed at giving a boost to the declining tourism industry in the country, the tourism ministry on Friday sought major tax incentives for key stakeholders in the field.
A memorandum in this regard was submitted by Tourism
Minister Kumari Selja to Finance Minister Pranab Mukherjee.
While tourism was growing at an encouraging pace in 2007,
there has been a fall in foreign tourist arrivals and foreign
exchange earnings later due to the global economic slowdown.
Against this background, Selja asked the Finance Minister
to provide some incentives in the next Budget, slated to be
tabled on July 6, to boost the tourism sector.
Changes in the Income Tax Act to provide tax incentive
for the growth of tourism infrastructure, deemed export status
for foreign exchange earned by inbound tour operators and
de-linking hotels from real estate sector for the purpose of
credit are some of the main demands included in the memorandum
submitted to the Finance Minister.
Selja also sought relaxation of import duties on
adventure tourism equipment.
Though several regions have a tremendous potential of
adventure tourism, the growth is being hampered due the
existing import policy.
Allowing import of the equipment through vendors is
expected to give a boost to the adventure tourism in the
country.
Bureau Report