TAAI Announces Expectations From Budget 2021-22

Travel Agents Association of India (TAAI), is the premier, nodal and largest Travel and Tourism Association in India.  With the Union Finance Budget round the corner, we expect that the Government undertakes our suggestions for  good governance and ease of doing business for our trade.  

Travel and Tourism contributes to nearly 10% of GDP. Indian trade contributes to over INR 2 Lac Crores of Foreign  Exchange Earnings through Tourism in India. This is expected to accelerate atleast by 15% in the next 2 years. We  expect that the Finance Ministry (FM) outlays plans to enhance and boost travel and tourism by ensuring adequate  support in ease of doing business. 

Jyoti Mayal, President TAAI, stated that, we believe the Budget 2021 should be focused more on spendings to  enable economic growth, what better area to spend in than tourism to generate more cash flow & earnings to enable  enhancement of infrastructure. 

One India One GST

We have already appealed for have a uniform GST across India whereby input tax credits can  be taken for services utilised across the country. The GST for tour operators should be at 1.8% with full setoff, being  18% on an average margin of 10%. Interstate credit of GST are not available to travel agents and tour operators on  IGST and the same should be considered at par which shall not only benefit the corporates but the consumers are  large. The similar being with airlines on the point of departure. 

We are expecting the FM to ensure LTC benefits not utilised this year due to the pandemic should be permitted to be carried forward in the coming 2 years. Further to boost the economy all expenses made for travel, tourism, MiCE, adventure, domestic and religious travel, by the taxpayer should be fully exempt from income tax for the next 2 years, stated Jyoti Mayal

The FM should also ensure 10% SIES credit to be adjusted completely under income tax. To ensure growth in tourism and all incomes from foreign exchange earnings should be given a tax holiday for a period of 2 years. TCS too to should be rescinded as it serves no purpose of tax collection and is only adding compliances of our members, she added. 

Jay Bhatia, Vice President of TAAI stated that Travel and Tourism trade should be granted an Industry status and be included in the concurrent list on a unified basis across the country. This shall help to produce high quality  service levels. All licenses and standardisation of regulations, processes, payment schedules, skills and knowledge  development shall get a boost. Further adding to the appeal he stated that we have requested that a single  employee benefit/protection/security policy benefit be adopted under one proviso which shall take care of  labour welfare, social security, industrial safety and health of self and family, child and women labour, etc. on the  basis of education / skill / wages / salaries etc. and maintaining one wage code across the country with Central and  State Governments. 

In our recommendation to the Ministry, we have also placed that a Structured Insurance Mechanism is required  to secure the future of travel agents against principals, viz a viz securing all payments of the consumer and the  traveller. The proposals on escrow or guarantee or underwriting by Government towards all airline operators to and  from India must also be secured in some from of Financial Security. 

Also Read: PATA Prediction: Visitor Arrivals In The Region May Take Three Years To Recover


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