The Union Budget 2018 has been scheduled on February 1st; the government will probably reduce taxes related to travel and tourism in order to improve economic growth and create job opportunities.Published on : Saturday, January 6, 2018
The Union Budget 2018 has been scheduled on February 1st; the government will probably reduce taxes related to travel and tourism in order to improve economic growth and create job opportunities.
As per Reuters, the government might offer more incentive to the USD 210 billion sectors, which has the possibility to add a domestic tourism impetus in the second most populous nation of the world.
With lots of new destinations included on airline routes last year, air travel is also swelling in leaps and bounds.
In the six months that ended on September 2017, India’s tourism sector grew over 10% in comparison to 8% a year before. As per industry report, tourism hires over 40 million people in India and stands the chance to add 10 million jobs in a decade.
If it was declared in the forthcoming budget, then it’s expected that many companies are probably to benefit which take in airlines like IndiGo, owned by InterGlobe Aviation, and Jet Airways and hotel operators like Indian Hotels, that owns the Taj Mahal chain and EIH Ltd. that administers the Oberoi hotels in India.
According to Mr. Arun Jaitley, the Finance Minister of India, it was anticipated to have lower income tax on corporate profit, provide tax incentives on hotel construction, as well as assign larger funds in terms of new tourist trains and constructing roads to tourist destinations.
“We’ll announce measures in the budget to promote investment in the tourism sector,” a top finance ministry official told Reuters, adding that Finance Minister Arun Jaitley is in favor of decreasing a 28% tax on hotel tariffs, and providing incentives to lure more private investments.
Tags: tourism tax to improve economy