A vacation in Goa during the monsoon season would be cheaper now as the hotel industry here is designing attractive packages following the concessions provided by the State Government.

The Manohar Parrikar-led BJP Government has offered 50 per cent concession on the luxury tax to mid- and upper-segment hotels during the off season — from May 1 to September 30.

The tourism and trade industry has said the move will help them mitigate the hike in air fares which had made off-season packages expensive.

The Chief Minister, Mr Manohar Parrikar, who is also the State Finance Minister, proposed in the annual State Budget that all hotels are granted 50 per cent concession of tax payable during the off-season, subject to prompt payment of tax and filing of returns in time.

The Travel and Tourism Association of Goa (TTAG), which has been lobbying for such concessions, said the move will help in making monsoon package more attractive, as stiff air fares had made off-season packages expensive.

“The hoteliers will be able to pass the benefit of concession directly to the customers,” TTAG spokesman, Mr Ralph D’Souza, said.

Market estimates reveal that around 1,500 medium and big hotels will gain from the incentives, while smaller hotels are exempted from paying luxury tax.

The sops will also spare hotel employees from facing lay-offs during the off season.

The hotels that offer a room for Rs 500-Rs 1,500 are imposed five per cent tax; those providing a room at Rs 1,500-Rs 3,000 are charged eight per cent tax, while the hotels that charge above Rs 3,000 per room, have to pay 10 per cent tax during the peak season.

Officials from the State commercial taxes department said luxury tax of Rs 130 crore is collected from these hotels annually but with the concession, the tax collection will drop by Rs 25-30 crore.

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