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Industry & Economy - Taxation


IATO wants service tax on inbound tourists withdrawn

Our Bureau


Mr Subhash Goyal, President, Indian Association of Tour Operators, with Major Murli Dhar, Senior Vice-President, at a press conference in the Capital on Wednesday. — Ramesh Sharma

New Delhi , Sept. 15

THE Indian Association of Tour Operators has written to the Prime Minister, Dr Manmohan Singh, seeking his intervention for the withdrawal of the service tax imposed by the Centre on inbound tourists.

A statement issued by the association states that the United Progressive Alliance Government has not exempted inbound tourists from the service tax despite the potential it has of creating millions of jobs. The statement also points to the fact that this was one of the important agenda points of the Common Minimum Programme.

Talking about the adverse effect of the 10 per cent luxury tax, which has been imposed by the Delhi State Government on the actual hotel room rate, the IATO President, Mr Subhash Goyal, said that the move would result in loss of about Rs 50 crore and loss of 5,000 jobs.

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