BHUBANESWAR: The Union Tourism Ministry will soon move GST Council of India seeking reduction and rationalisation of taxes levied on the tourism industry, particularly hotel room tariff. Informing this at the Odisha Tourism Conclave organised by Hotel and Restaurant Association of Odisha (HRAO) here on Wednesday, Additional Director General (Tourism) Rupinder Brar said the Centre is sensitive to the needs of the industry.
“The various States, including Odisha, have raised the issue. Since the Council has tweaked the tax charges in other segments in the past as per the needs, we hope it will also look into the demands of the tourism industry,” she said.
Chairman, HRAO, JK Mohanty expressed concern over 28 per cent GST charged on rooms above `7,500. The State is suffering from a shortage of rooms and star hotels here fail to compete with international tourism market, especially in South East Asia, where the taxes are low and hotels are cheaper, he added. Brar said, “I am sure the GST Council will certainly take a decision which is not only in the interest of the industry but also the country.”
The ADG (Tourism) sought proposals from the State Government to develop and promote its places of tourist attraction. The Centre has introduced several schemes and allocated funds which are to be disseminated to states for execution. Odisha Government needs to define its areas of priority and send proposals as per existing guidelines, she said.
“The Centre is going to kick off its global media campaign shortly. Odisha has many things to showcase which will be promoted through the campaign and we will be happy to support Odisha in tourism promotion,” she added. The conclave themed ‘Tourism to be the driving force of the State economy’ was inaugurated by Governor Prof Ganeshi Lal.
He stressed on the need to publicise Odisha’s natural resources like forests, hills and lakes besides its rich culture, tradition and cuisines in order to attract more tourists and generate employment. State Tourism Minister Jyoti Prakash Panigrahi said the State aims to develop Puri as an international tourist destination for which the Government has earmarked an investment of `500 crore.
HRAO demanded the Government to restart providing capital investment and interest subsidy at least for three years to boost tourism infrastructure and hotel industry. “It will help to contain out-go of foreign exchange and Indians going abroad,” Mohanty added.