TBM Staff - Mumbai The Travel Agents Association of India (TAAI) has sought ‘One India One Tourism’ approach, which is inclusive of ‘One Tax Structure,’ in the forthcoming Union Budget to revive the pandemic-hit domestic travel, tourism and hospitality industry.
The association strongly believes that there are several aspects which can be expected in the upcoming budget session to support the entire sector holistically ‘Travel Tourism & Hospitality’ which will help in making this sector survive, revive & economically support India to become the largest hub for the world. For this, it is extremely important for both the central and state governments to work in tandem to facilitate this sector & support it to be included in the concurrent list to get Industry Status to make it more structured.
“The government should strive to increase the disposable income of the middle classes so that discretionary spending will rise. Concrete steps should be taken to improve the cash flows and reduce the working capital burden on start-ups, existing MSMEs & SMEs. Access to easy credit, reducing income tax rate & GST tax rate, abolishment of TCS & wage support with ease of business. Strengthening MSMEs, creating a fund of funds scheme for technology adoption for use in industry 4.0, reviving the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up-gradation,” the association said.
Besides this, TAAI also said that the government should consider E visa fees waiver for all tourist visas for 2022-2023, to support inbound revival Export status for tourism export earnings to support the inbound revival. Doubled, expenditure allocation for tourism ministry to enable intensive global reach out to support the inbound revival. “Domestic income tax travel credit for Indian citizens and Indian companies to support domestic retail and domestic mice pick up. Global bidding fund to enable bidding support to Indian mice companies to bring global mice events to India. Emergency Credit Line Guarantee Scheme (ECLGS) extension for tourism and hospitality. ATF ought to be brought under the GST to make air travel more viable for the entire aviation stakeholders,” TAAI said.
Lastly and most vital is a structured mechanism to secure travel agents’ payments to ensure security for travel agents and operators’ survival, it said. TAAI added that travel agents’ payments to principals are unsecured credit and it is imperative to ensure that some form of mechanisms, whether escrow or guarantee or underwriting based mechanisms, are in place for securing travel agents money.
