“The industry needs Infrastructure Status to be accorded by the Government of India to enable the hospitality sector to avail long-term funds under the RBI Infrastructure lending norm criteria. This will enhance quality accommodation supply and therefore, stimulate higher global and domestic travel demand. Although industry status has been accorded to tourism and hospitality by many State Governments, the incentives and privileges associated with an industry have not been conferred to the sector. Industry status will help in setting up a corpus fund to incentivize all States to align policies and set off any losses that may occur. Tourism and hospitality should be placed on the concurrent list of the Constitution to make tourism into a national agenda. It will ensure better coordination between the Centre and the State for fund allocation and implementation of projects and programs aimed for the holistic development of the tourism sector in the country,” Jaison Chacko, Secretary General, Federation of Hotel & Restaurant Associations of India (FHRAI).
“We expect the Union Budget to include relaxations in Section 115JB – Minimum Alternate Tax (MAT) waiver for two years from April 2023 to March 2025. This will help reduce the tax burden and provide marginal relief to the hospitality sector. The Budget should extend investment-linked benefits under Section 35 AD for brownfield hospitality projects to the on-going capex of hotels and resorts. This shall immensely benefit high-quality brownfield capex and capacity expansion, accelerating investment and employment in the sector. The Budget should modify the Leave Travel Allowance (LTA) rules to include the amount spent on hotel stays to be considered as LTA expense and payments by foreigners in Rupees at hotels should be as foreign exchange earned for the purpose of EPCG scheme. The ECLGS loan term should be increased for at least 10 years or as per the loan repayment period of the principal loan, whichever is longer. The industry needs a waiver of secondary condition with regard to average Foreign Exchange Earnings under EPCG scheme retrospectively from FY 2007-08 onwards as well as would require the continuation of EPCG Scheme, service export benefits and export status. Our long-standing demands has been for Infrastructure Status to the hospitality industry under the RBI Infrastructure lending norm and granting Industry status and allied benefits to the hospitality industry. Tourism and Hospitality should be placed on the concurrent list of the Constitution for effective legislation to make tourism into a national agenda. Lastly, the industry requires uniform GST at 12 per cent on all hotels across the country,” Pradeep Shetty, President, Hotel and Restaurant Association of Western India (HRAWI)
