KOCHI: Kerala Travel Mart (KTM) Society, a leading tourism body, has expressed concern over high rates of taxation under the GST regime, saying it would stifle the tourism business in the country by making it unsustainable and drive away foreign tourists to destinations other than India.
A KTM delegation, led by President Abraham George along with KV Thomas, MP, held meetings with Union Tourism Minister Mahesh Sharma, Tourism Secretary Rashmi Sharma, the GST Council Chairperson and officials of the Union Finance Ministry and GST Council, drawing their attention to the serious anomalies in the GST, which would throw the tourism industry into a major crisis, reports Business Line.
There is almost a 19 per cent tax hike for an Indian product after the implementation of GST, George said and urged the Centre to address the issue urgently.
The industry is already under stress following demonetisation and liquor ban on highways, he said, adding that the implementation of GST is adversely impacting the business.
KTM has also sent a memorandum to Union Finance Minister Arun Jaitley, pointing out that that ‘the new GST structure is the highest in the world’ and is ‘seriously affecting the sustainability of the tourism business.’