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%.
