Provide stimulus, waive interest on VAT/GST
Vijay C Roy
Tribune News Service
Chandigarh, January 28
Hit hard by the pandemic, the travel and tourism sector has high expectations from the upcoming Budget. The sector feels the Central government should announce pro-growth steps and incentives to bring hospitality sector back on track. Let’s have a look what the hospitality industry expects from the Budget:
Stimulus package
Many hoteliers are on the verge of going bust. According to the industry, the government could consider extending MSME working capital loans to this sector to help job restoration. Besides, relaxation of interest on loans and moratorium on loan repayment is the need of the hour. “A dedicated stimulus package for the distressed hospitality sector is a must,” said Rohit Warrier, CEO and founder, Warrier Safe Shields.
Waive interest on VAT/GST
As there was no business during the lockdown and subsequent months due to restrictions, the working capital eroded. The industry says there should be no late fee and interest on VAT and GST payments and returns should be allowed to be filed up to March 31.
Cut GST rates on hotels
The reduction in GST will have a direct impact on room tariffs. The reduction would provide immediate relief to the industry as consumers will be charged at a lesser rate which in turn will increase occupancy in hotels.
Industry status
The hotel industry must be accorded infrastructure industry status. By doing this, the hotels would be charged power rates applicable to industries instead of commercial rates.
Expedite Motor Vehicle Act
To promote domestic tourism, the government must expedite the Motor Vehicle Act notification on ‘One Nation, One Permit’. This will boost inter-state movement of tourist vehicles.
