Team Herald
PANJIM: Tourism stakeholders have lauded the State government’s efforts to bring down the GST rates for hotels in the category between Rs 2000 and Rs 7500 and restaurants in five-star hotels, from the existing 28 percent to 18 percent.
“We are lucky to have a Chief Minister (Manohar Parrikar) with strong influence at the Centre and more importantly who understands the taxation issues facing the Industry. We thank him for his strong and decisive handling of the issue which has given much needed relief to the Industry,” Travel and Tourism Association of Goa (TTAG) President Savio Messais said.
A TTAG delegation led by Vice-President Ernest Dias, along with Secretary Guitry Velho and Joint Assistant Secretary Jack Sukhija, called on the chief minister on Tuesday to thank him for the role he played in getting the GST rates reduced.
Messias, who took up this issue with the government, stated that the CM assured to work towards reducing the rate further to 18 percent for all hotel room tariffs, which will ensure a level playing field and maintaining a status quo with the present luxury/service tax rates.
President of Goa Hotels & Restaurant Association Gaurish Dhond echoed Messias’ views hopeful that tourists would not divert to countries that offer affordable food and holidays. “It is a welcome step from the government because Goa had become more expensive than countries like Malaysia, Sri Lanka and Dubai. We have experienced that tourists had diverted to these countries,” he told Herald. “It will generate more tourism in Goa,” Dhond added.
The TTAG President had written to Finance Minister Arun Jaitley, on March 15, 2017 apprising him that GST rates are between 5-8 percent globally and urged to ensure a level playing field for the local industry. On June 15 Messias followed up with a memorandum to Parrikar pointing out that costs for hotel accommodation in Goa are nearly double that of Thailand for similar room tariffs. This was solely due to the fact that Thailand had a GST of eight percent while India had a GST of 28 percent.
With a move to lower tax rates for all hotel rooms under the new indirect tax regime, hotelier Ralph D’Souza asserted that the corrective measure will boost tourism as well as increase State’s revenue collection.
“The reduction in the tax is a positive development. In Goa, the bulk market is domestic tourists and if we don’t give them good and hygienic food at affordable rates, they would either upset their health because of non-hygienic food or we will see an increasing trend wherein busload of tourists drive down to Goa and cook by the roadside,” D’Souza, also past TTAG President told Herald.
He added, “The package tour including accommodation and meals are usually expensive due to high tax. With the lowering of tax rates, the revenue collection will be much more and it will also encourage people to eat at restaurants. On the whole it is a good corrective step.”
