Excessive goods and services tax hurting Indian tourism industry
The tourism industry in India is under severe pressure because the much-hyped GST (Goods and Services Tax) is having an adverse effect on the industry.
In an elaborate note, the Indian Association of Tour Operators’ President Pronab Sarkar has pointed out the 25 percent effective tax rate on tour operators and taxes on hotels, restaurants and other stakeholders, is much higher than in other neighboring and competing nations, which is not good for the tourism sector.
Multiple and cascading impact of taxes is not helping the growth of the industry, Sarkar said in his note, which seems to be well documented and researched.
Double taxation is another sore point with the industry.