FAITH the policy federation of all the national associations representing the complete tourism, travel, and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) has flagged critical concerns in the just-released SEIS notification
FAITH has made reference to the SEIS entitlement through duty credit slips of notification no: 29/ 2015-20, dated 23rd September 2021, which will bring some relief to cash-starved tourism enterprises after almost 18 months of a severe pandemic.
FAITH has raised two requests for urgent amendments in the notification.
FAITH has said that the decrease in rates of duty credit which have been brought down from 7% and 5% to 5% and 3% respectively to travel agencies tour operators services ( CPC – 7471) hotel & restaurants (CPC – 641-643) respectively is going to be a massive hit on the cash flows of tour operators & hotels who made continued critical financial commitments in international markets in FY 2019 -20 to enable the increase of international travellers to India beyond 17 million which led to India’s global market share of international arrivals beyond 1%.
FAITH has requested that Sector – Tourism & Travel Related Services be exempted from this notified rate decrease as Tourism, Travel & Hospitality Related Services has been the worst affected industry from the pandemic. This has been highlighted in the Kamath RBI report and has been acknowledged multiple times across all representations of the Central & State Governments.
FAITH has also requested to remove the arbitrary cap of ₹ 5 crores on SEIS entitlements for the tourism, travel & hospitality industry for FY 19-20.
Since the Indian tourism travel and hospitality industry is a mix of large, medium, small & micro tourism travel & hospitality Industry. Each of these players has risen above & beyond their sizes to contribute to the growth of Indian Tourism, valuable foreign exchange & thus crucial jobs. Setting such a cap will be a major disincentive to large & medium players in their efforts to take tourism enterprises ‘Made in India’ global. FAITH has requested to remove this arbitrary cap of ₹ 5 crores on SEIS entitlements for the tourism, travel & hospitality industry.
FAITH opined that addressing these concerns will bring ease of doing business and remove any policy uncertainty in the Indian Tourism Travel & Hospitality industry.
Also, read
PATA partners with TourLink project
Watch on Youtube
Mr. Nakul Anand, ITC Group @ 34th IATO Annual Convention
####
