Budget 2022: Travel agents' body seeks 'One India One Tourism' approach
- TAAI is seeking the 'One India One Tourism' approach in Budget
- Several measures are required to support the travel and hospitality sectors
- E-visa fees waiver for all tourist visas for 2022-2023 should be considered
The Travel Agents Association of India (TAAI) is seeking the 'One India One Tourism' approach in Budget 2022, which is inclusive of the 'One Tax' structure to revive pandemic-hit domestic travel.
The industry body has demanded the inclusion of aviation turbine fuel (ATF) in the GST to make air travel “more viable” for all. It also sought extension of the emergency credit line guarantee scheme (ECLGS).
TAAI in an official statement said several aspects can be expected in the upcoming Budget to support the travel and hospitality sectors, which will help it to revive.
“For this, it is extremely important for both the central and state governments to work in tandem to facilitate this sector and support it to be included in the concurrent list to get industry status to make it more structured,” the association said.
TAAI, which is headed by Jyoti Mayal, said the government should look to increase the disposable income of the middle classes to encourage discretionary spending.
Solid measures should be taken such as easy credit availability, reducing the income tax rate and GST rate, abolishment of tax collected at source (TCS), and wage support with ease of business. These measures will help to improve cash flows and reduce the working capital burden on start-ups, MSMEs and SMEs.
Apart from strengthening MSMEs, TAAI is expecting steps such as creating a fund of funds scheme for technology adoption for use in industry 4.0 and reviving of the credit-linked capital subsidy scheme (CLCSS) for technology up-gradation, in the forthcoming union budget.
TAAI added that important points to be considered are e-visa fees waiver for all tourist visas for 2022-2023, to support inbound revival export status for tourism export earnings.
The association has also sought doubling the expenditure allocation for the tourism ministry to enable intensive global reach-out to support the inbound revival. It also demanded domestic income tax travel credit for Indian citizens and Indian companies to support domestic retail and domestic MICE (meetings, incentives, conferences, and exhibitions) pick-up.