Legislators : 12% GST on cheap hotel rooms will hit domestic tourist numbers

“While the Council for GST is yet to finalise the GST on casinos, this same body did not hesitate to impose GST on hotels charging less than Rs 1,000 for rooms.

PORVORIM: Legislators called on the Tourism Minister to seek the reversal of 12 percent GST on rooms below Rs 1,000 per night citing that the move will affect  the influx of domestic tourists,who do not fall under the high-end category, into the State. 

Nuvem MLA Aleixo Sequeira, while pointing out to huge losses faced by the stakeholders during the Covid-19 pandemic, urged the government to grant some concession for shack licences. He further referred to the recent imposition of 12% GST on hotels with room tariffs below Rs 1,000 per night, stating it will impact the arrivals. 

“While the Council for GST is yet to finalise the GST on casinos, this same body did not hesitate to impose GST on hotels charging less than Rs 1,000 for rooms. Goa attracts tourists from all categories, therefore the Minster should take up the matter with the Central government in order to bring down the GST to zero,” Sequeira said during the discussion on the Demands for Grants on Tourism.

He further suggested placing experts from the tourism trade on the Board in order to promote Goa’s various tourism facets in the right direction. 

On the beach wedding concept that has become popular in Goa, Sequeira suggested single window system for clearances. He stated that while beach weddings are picking up particularly in South Goa, the process for getting permission is cumbersome. To avoid discouraging couples, Sequeira suggested a single window bringing under it various related departments for permissions.

Siolim MLA Delilah Lobo also shared the same view while opposing demands for grants. She highlighted the plight of coastal areas where beggars, hawkers and drugs have become a menace. She urged the Tourism Department to crack a whip on the problems in coordination with the Goa Police.

Regarding Sunburn, Sequeira asked the government to look into the early sale of tickets even as the permission is still awaited. Lobo added that events such as Sunburn and local festivals like Bonderam, Carnival and Shigmo should be a part of Goa Tourism Calendar.

Mandrem MLA Jit Arolkar brought to the notice of the House the encroachment on Tourism property in his constituency while urging immediate action. He also demanded government’s intervention to act against the ‘family raj’ in shack business. He maintained that poor needy individuals be given a chance to earn their livelihood through shacks and not be overpowered by families running various shacks, as he supported business to only one person from each family.

Cuncolim MLA Yuri Alemao raised objections to non-Goans running home stays in Goa, which he opined was snatching away locals’ opportunity. On local festivals, he urged time relaxation as was the trend several years ago in Goa. 

St Andre MLA VireshBorkar lamented about how the image of Goa as sex, drugs and liquor has dented the State’s image.

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