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Nirmala Ji Jara Suniye: Apex hospitality body pitches in budget recommendations
HAI’s pre-budget memorandum for the union budget 2023-24
Hyderabad: The Hotel Association of India (HAI), the apex body of the Indian Hospitality Industry has urged the Union Government to consider certain proposals under the heads of (i) Direct Taxes (ii) Customs & Central Excise (iii) Policy & Other Issues and (iv) Indirect Taxes. HAI's pre-budget memorandum for the union budget 2023-24
The HAI had submitted its recommendations to the Centre during the budget meetings held in November. They said that the industry was slowly on the path to recover after a major set back it suffered during the last two years of Covid-19.
This is one sector where there is high potential for revenue generation and creation of jobs. Hence they said they were expecting that under Direct Taxes the centre would allow hotels a higher rate of depreciation, allowing business losses to be carried forward for 12 years instead of eight years, allowing carry forward of MAT Credit and allowing CSR expenditure in computing business income.
Under Customs and Central Excise, they recommended removing petroleum products and alcohol from excise and placing them under GST Act.
Another proposal relates to restoration of the benefits to hotels under the Service Exports from India Scheme (SEIS) for at least five years beyond 2019-20 and maintaining hotel reward points under the Scheme at 5 percent.
Key Policy recommendations included according infrastructure status to hotels, provision of online single window clearance for hotel licenses, subsidised power tariffs for hotels as available to manufacturing industries and including hotel costs in the expenses in addition to travel expenses under the LTA Scheme. A creation of an empowered National Tourism Board has also been proposed. HAI emphasised on the need for reduction in GST on hotels from the prevalent 18% to 12% and reducing the rate of GST on restaurants located in hotels to 12% with full ITC.
The Tourism & Hospitality industry, they said had contributed USD 178 billion to India's economy, accounting for 5.6% of GDP and 6% of employment in 2021. They said the governments support was of paramount importance if the sector has to bounce back and hence they want rationalisation of taxes and better ease of doing business along with policy interventions.
