The Federation of Associations in Indian Tourism & Hospitality (FAITH) has urged the Finance Ministry and RBI to urgently take measures to protect the tourism and hotel industry jobs as it has been one of the hardest-hit sectors due to the pandemic outbreak.

The tourism and hospitality industry body has suggested waiver or compensation for fixed statutory liabilities, direct benefit transfer of basic pay, and credit of SEIS (Service Exports from India Scheme) dues for 2019-20.

Bills to pay

The industry body said that despite no revenue, the industry still needs to meet statutory liabilities & compliance liabilities at both the State and Central government level & other regulatory bodies. These include various forms of duties, taxes, cess or license fees including electricity & water, property taxes, excise duties, transport taxes, parking cess, insurance premiums provident fund, ESI contribution on hotels, travel agents, tour operators, restaurants tourist transporters or any other form of tourism travel & hospitality services.

“With no revenues and businesses continuing under shutdown for measures beyond their control, it is principally unfair for these businesses to continue paying fixed costs of statutory liabilities & compliances for them. FAITH has requested the government to urgently urge all State governments and the respective Central government ministries to waive off these fixed levies & compliances till the period of the pandemic,” it said, adding that this will prevent Indian tourism and hospitality businesses from declaring bankruptcies.

It has also requested that an amount equivalent to pre-pandemic basic salaries should be provided each month to tourism, travel & hospitality employees in a direct benefit transfer against their PAN Card. “This will help support livelihoods of scores of people and their families till the duration of the pandemic. It will also enable them to be job and service ready for when it is time to restart Indian tourism,” it added.

“SEIS scrips dues against tourism foreign exchange earned for 2019-20 is still outstanding which is creating significant distress on their individual balance sheets. The FAITH has requested that these SEIS dues be credited immediately to enable such tourism, travel & hospitality companies to meet their expenses and to take care of their employees,” the statement added.

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