Union Budget 2022: Hospitality industry seeks tax relief, incentives

New Delhi: As Finance Minister Nirmala Sitharaman is set to present the budget for the financial year 2022-23 in February, the hospitality sector is demanding lower taxes, incentives and relief. They want easy relaxations for the sector in the upcoming Union Budget.

The hospitality sector has urged the government to announce more schemes to promote tourism in the upcoming budget.

Rahul Deb Banerjee, Vice President, The Clarks Hotels and Resorts, told Zee Media, “The government should announce more plans to boost tourism in the coming budget. Also, due to the pandemic, many small hotels and resorts are closed. It is necessary. For revival of sick units, government announces interest free loan or waiver. Also, more funds should be dedicated for infrastructure development. There are still tourist places where There is a lack of proper connectivity. These places need development of roads and connectivity by buses and trains. The government has already started taking measures for infrastructure development, but more emphasis is needed.”

“To promote tourism, the government announced UDAN, connecting tier 2 and tier-3 cities with flights. But on the ground, many flights are not connected to smaller tourist destinations. Also, cities need proper airports. There is a shortage. The government has opened many international airports in the last five years, but more needs to be done. Train connectivity should also increase.”

Sanjay Kasal, general manager of Namah Resort, Jim Corbett National Park, said the pandemic has sent the hospitality sector into a shambles as much of it has been hit hard except for packaged food items, takeaways and to a lesser extent smaller areas. Has happened. Resorts in leisure destinations are in the driveable range, but a major chunk is surely going through a crux and the government needs to lend a helping hand to those really needed in these times.

It was seen in the pandemic that resorts in small towns did well in leisure destinations, as more and more people opted for longer stays and longer vacations, although commercial hotels in the corporate sector never attracted as many customers as most customers. A digital platform of work-from-home and meeting options.

Kasal said, “The business of MICE was majorly affected during the pandemic. The high tax rate on the hospitality sector seems to be a burden as the pre-existing cost structure as well as the additional expenses of adhering to the COVID protocols have led to Some players have been forced to make unwanted deductions on internal expenses, salaries, maintenance costs etc”.

He said the government needs to rethink on taxes, especially where the hospitality sector is concerned.

“Easy concessions should be given. Also, based on the performance of the past few years, if commercial hotels are not doing well, then there is a need to reduce the tax structure,” Kasal said.

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