The tourism department’s proposal to introduce a ‘tourism development and sustainability’ fee has been met with consternation, with stakeholders pointing out that it goes against everything that the industry has been recommending to state govt. Industry players also said that the introduction of a new tax for the sector defeats the very purpose of GST, which aimed at subsuming all taxes.
According to sources, the Travel and Tourism Association of Goa has said that the fee is “uncalled for” and needs a rethink.
“The tourism industry is highly taxed. If a levy of 2 per cent on every invoice is imposed, our competitiveness will be adversely affected, and the complia nce burden will increase. No other tourism destination in India, including Kerala and Rajasthan, which are our main competitors in the inbound market, levy such a fee,” TTAG said in a letter to the tourism department.
Minister of Tourism and Culture, Uttar Pradesh said, ‘Uttar Pradesh is the fourth largest state in terms of area. It is the largest state with a population of 25 crores and is equal to the fifth country in the world in terms of population. Fortunately, all the places from the birth of Lord Buddha to his education, attainment of knowledge, preaching and religious awakening campaigns and Mahaparinirvana (death) are located here.”
A hotelier that TOI spoke to described the proposed fee as “ridiculous” which appears to have been introduced in a hurry. “There are so many taxes charged in Goa. There is GST, VAT on alcohol, trade tax, garbage tax, and now a new tax. Thailand and other countries have reduced prices, and here we are thinking of increasing taxes,” the hotelier said.Former GCCI president and tourism veteran Ralph de Sousa said that the additional taxes defeat the purpose of GST. “It is contradictory to what we are all trying to achieve. When parallel taxes come, it will not help the tourism industry, and in today’s worldwide competition, it is not feasible. Besides GST, we have local taxes that are extremely heavy, such as garbage tax, professional tax, and other fees that are collected at the panchayat level,” said Sousa.
A basic survey by TTAG estimates that Goa’s tourism and hospitality industry generates around INR 2,500 crore in indirect taxes such as GST, VAT, and excise. In addition, local bodies like panchayats and municipal bodies levy waste management fees, trade taxes, and signboard taxes.
