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States should grant “proportional relief” on legal obligations to the tourism industry affected by the pandemic: FE | India News


NEW DELHI: State governments should offer ‘commensurate relief’ on legal obligations to the tourism industry affected by the pandemic, FAITH, the policy federation of all national associations representing India’s tourism, travel and hospitality business has informed the chief ministers of all states in a letter.
Highlighting the deep financial stress caused by the pandemic in the travel and hospitality sector during 2020-21, FAITH said that tourism businesses will continue to be affected due to travel restrictions, reduced international and domestic connectivity and persistent hesitation. on trips.
With the resulting impact on the viability of tourism businesses and jobs, FAITH said states should offer a 100% exemption, without penalties, to travel and hospitality companies on all fixed charges for electricity and utilities, taxes specials, property taxes, interstate tourist transportation taxes, SGST. exemption and all local taxes.
The industry body also sought an automatic renewal of all licenses, permits, permits that expire in the 2021-22 fiscal year without any financial charges or penalties, and an industry status for tourist travel and hospitality.
By asking states for a refund of their unused GST credit for the liquidity needs of the travel sector, the companies also sought a reduction in VAT on state aviation turbine fuel and a special reduction in airport taxes on state level to incentivize travel.
As a special appeal to unorganized workers working with the tourism sector, FAITH applied for a living wage and medical condition coverage as a ‘direct transfer’ grant.
In addition, they sought the creation of a tourism working group at the state level together with representatives of all FAITH member associations, that the VAT of alcoholic beverages be included in the GST and that the VAT and special taxes of the state alcoholic beverages to stimulate the general influx of tourism.

Times of India