FAITH looking forward to Union Budget FY 21-22 with expectations

Tuesday, January 19, 2021

FAITH – the policy federation of all the national associations representing the complete tourism, travel, and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) and cause partner AIRDA is looking forward to the Union budget FY 21-22 with a lot of expectations.

FAITH Associations is interacting with tourism, finance & NITI Aayog at various levels hoping that the budget will not only pull tourism in India out of the current low phase but also enable the Indian tourism industry to claim its rightful leadership position.

In order to make sure that there is shared tourism vision across the center and state, FAITH has proposed creating a National Tourism Council of Chief Ministers headed by the PM along with the Tourism Minister. FAITH recommends that the council needs to be supported by a common industry status across the country for the complete tourism industry by putting it in the parallel list.

The tourism industry is fully recognized at par with merchandise exports, and FAITH has suggested export earnings to be made tax free and also incidence of taxes in tourism earnings to be zero rated. Also, SEIS of 10% to all foreign exchange earning members in tourism should be made applicable for 5 years to ensure a post-Covid revival.

To make sure that the tourism industry becomes a core domestic industry, there needs to be an intensive strategy. An income tax exclusion regarding traveling within India, income tax credits for up to Rs. 1.5 lakhs when spending with GST registered domestic tour operators, travel agents, hoteliers, and transporters anywhere within India needs to be implemented.

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