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The Government has provided various incentives to hotel industry to boost tourism which include:
i) Expenditure tax on hotel has been abolished.
ii) States have been asked to reduce sales tax rates on air turbine fuel, luxury tax on hotels, sales tax on F&B in hotels, rationalize passenger tax on inter-State transport coaches in order to make their destinations competitive.
iii) State Governments have been requested to adopt a progressive land allotment policy to facilitate promotion of budet hotels.
iv) Capital subsidy is being given to set up budget hotels in one to three star categories of hotels in all locations except metro cities.
v) Many State Governments have declared hotels as industry and extended incentives/concessions as per their industrial policy.
This was informed by the Minister of State for Tourism Smt. Renuka Chowdhury in reply to a question by Shri B.J. Panda in Rajya Sabha today.
NCJ/DT
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