The Hindu Business Line : `Taxation norms hurting tourism'

NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI), in a study jointly conducted with AF Ferguson, has found that the high rate of taxation on tourists is one of the major burden on tourism in the country.

According to Dr Amit Mitra, Secretary-General, FICCI, "In addition to an optimal rate of tax, there should be a uniformity in the tax structure of the State. Taxes that are unproductive should be avoided and there should be no duplication of taxes''. The study finds that a reduction in taxes by 50 per cent, will lead to a doubling in the potential number of households who can afford `tourism' at that level of cost. In other words, the lower total cost pulls in more tourists into the "affordability basket''.

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