Policy and law

Disapointing Budget: Subhash Goyal, IATO

BUDGET REACTION 2016-17

Subhash Goyal, President, Indian Association of Tour Operators (IATO)

IATO President SubhashGoyal
IATO President SubhashGoyal

Overall, the Budget was a very disappointing one for the tourism industry.

The Prime Minister Narendra Modi had talked about tourism  being the best engine for job creation and poverty alleviation for India. Unfortunately, there was nothing in the Budget that could boost tourism in the country and help achieve these goals.

The Tourism industry was also looking at exemption of Service Tax on foreign exchange earnings. This too did not happen. Instead, a 0.5% cess component has been added, increasing the Service Tax component to 15%. The additional tax on SUVs and diesel coaches will make tourist coaches expensive as well hampering growth for tour operators. . 

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