Goa hoteliers demand cut in the Goods and Services Tax on room tariff

Updated: Sep 06, 2019, 17:52 IST | mid-day online correspondent

Goa, which is one of the top tourist destinations in the country, attracts nearly eight million tourists every year

Goa hoteliers demand cut in the Goods and Services Tax on room tariff
Goa Chief Minister Pramod Sawant. Pic/Twitter IANS

On Friday, top hoteliers and tourism industry stakeholders from Goa met Chief Minister Pramod Sawant to seek a reduction in the Goods and Services Tax (GST) on room tariff from 28 percent to 12 percent. The hoteliers and stakeholders are seeking a reduction in GST on toom tariff so that it will the state to compete with international destinations such as Thailand and Sri Lanka.

President of the Travel and Tourism Association of Goa, Savio Messias said, "The high GST on room tariff was squeezing the tourism industry and keeping it from being competitive in the global market. We have submitted to the Chief Minister our plea for a reduction in the GST on room rates from 28 percent to 12 percent."

At present, the room in starred hotels is attracting higher GST, which is generally more than one-fourth of the tariff, reports news agency IANS. Messias also said that rival tourism destinations such as Thailand and Sri Lanka charge less tax on room tariff. Charging less tax on room tariffs is helping them attract tourists by offering rooms at more affordable rates when compared the same with Goa.

"The Chief Minister has promised to take up the issue with Finance Minister Nirmala Sitharaman when she arrives here to chair the GST Council meeting, scheduled on September 20," Messias said.

Goa, which is one of the top tourist destinations in the country, attracts nearly eight million tourists every year. But, experts from the tourism industry say that high tax is proving a deterrent to the hotel and tourism industry in Goa.

Also Read: Pramod Sawant holds review meeting with Electricity Department ahead of Ganesh Chaturthi

With inputs from IANS

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