FAITH asks government to take away increase of TCS for foreign tours

Thursday, April 6, 2023

The board of Federation of Associations in Indian Tourism & Hospitality (FAITH) has urged the government to take away the surge of Tax Collection at Source (TCS) regarding theforeign tour packages from 20 percent to 5 percent declared in the finance bill this year.

Such a decision has it disadvantageous for domestic tour operators, since the bookings are moving to far-off tour operators as they are not accountable to subtract this charge, said the organization.

The panel of FAITH is also urging the government to decrease TCS from 5 percent to 2.5 percent with the intention ofincreasing number of people reserving their overseasjourneywith the help of tour operators established in India and the admitted objective of gettingmore people into the tax net getting realized.

This phase of increasing the TCS has prominentlyweakened the commercialpossibilities of Indian tour operators who were witnessing recovery after suffering for long under the effects of the pandemic, according to FAITH.

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