At a time when tourism industry in Goa is at the receiving end of high taxation, the upcoming goods and services tax (GST) might just help in cutting its tax obligations, provided the GST rate is pegged at 18%.
the goan I network
PANAJI
Sandip Bhandare, a chartered accountant, said, “There are a number of taxes right now on tourism industry. There’s luxury tax from 8% to 12% on room accommodation. Besides, there’s service tax which amounts to 9% on accommodation. So, overall, on room accommodation itself tax rate can range from 17% to 21%.”
Bhandare continued, “There’s value-added-tax (VAT) of 12.5% on food and soft beverages in restaurants. For alcoholic drinks, VAT may stretch upto 20-25%. Besides, there’s a service tax of 6% on restaurant’s bill too.”
This clearly shows that many hotels end up paying overall tax in the range of 25% of their turnover. All such hotels will gain if GST is kept at 18%.
Gaurish Dhond, former president of Travel and Tourism Association of Goa (TTAG), said, “Tourism industry will definitely benefit if GST is kept at 18%. For example, VAT on alcohol is more than 20%, which shows that tourism industry will gain if GST is pegged at 18%. Benefits of lower taxes will also be passed on to the customer.”
Tapas De, general manager, Hotel Fidalgo, said, “At the moment, our tax liability is more than 18%.
