Union budget 2022: hotel industry calls for tax breaks and incentives | Economy News
New Delhi: As Finance Minister Nirmala Sitharaman is due to present the budget for fiscal year 2022-2023 in February, the hospitality industry is looking to cut taxes, incentives and reliefs. They are also looking for easy solutions for the sector in the next Union budget.
The hotel industry has urged the government to announce more programs to promote tourism in the next budget.
Rahul Deb Banerjee, vice president of The Clarks Hotels & Resorts told Zee Media: âThe government should announce more programs to promote tourism in the next budget. In addition, due to the pandemic, many small hotels and resorts have closed. It is essential for the revival of the units in difficulty, the government announces loans without interest. In addition, more funds should be devoted to infrastructure development. There are still tourist sites that lack adequate connectivity. These places need development of roads and connectivity with buses and trains. The government has already started to take measures for infrastructure development, but more efforts are needed. “
âIn order to promote tourism, the government announced Uddaan, connecting level 2 and level 3 cities with flights. But at ground level, many flights are not connected to smaller tourist destinations. In addition, cities lack suitable airports. The government has opened many international airports over the past five years, but more needed to be done. There should also be an increase in train connectivity, âhe added.
Sanjay Kasal, general manager, Namah Resort, Jim Corbett National Park said that due to the pandemic, the hospitality industry has been plunged into disarray as the majority of it has been hit hard, leaving out small areas like packaged food, take out and to some extent Resorts in leisure destinations are accessible by car, but a big chunk is definitely going through a crucial time and the government needs to consider give the support he really needs in these times.
It was found during the pandemic that resorts in small towns in leisure destinations fared well as more people opted for long stays and vacations, but business hotels in the Corporate sector have never seen much footfall as the majority of clients have switched to work from home and digital meeting platform options.
Kasal added: âThe MICE business has been severely affected during the pandemic. Rather, the high tax rate on the hospitality sector seems to be a burden as the already existing cost structures as well as the additional expenses related to the monitoring of the Covid protocol have forced some of the players to make unwanted cuts in internal spending, salaries, maintenance costs, etc.
He said the government needs to review taxes, especially with regard to the hospitality sector.
“Easy sops should be given. Also, based on the performance of the past few years, if business hotels are not doing well, the tax structure needs to be lowered,” Kasal said.