the goan I network
PANAJI
Citing high taxation as a huge impediment to beat international competition from destinations such as Thailand and Sri Lanka, Goa’s tourism industry has knocked the doors of the State government with a formal request to intercede with the Centre to cut Goods and Services Tax (GST) rates for room tariffs from the current levels of 28 per-cent to 12 per-cent. Several hoteliers and office bearers of the Travel and Tourism Association of Goa met with Chief Minister Pramod Sawant on Friday and placed the demand before him.
According to TTAG president Savio Messias, the highest slab in the GST regime was applicable to room tariffs and it was hurting the tourism industry thus chipping off Goa’s competitive edge in the international tourism market, particularly in the South Asia region.
“We submitted to the Chief Minister our plea to reduce GST from 28 to 12 per cent,” Messias said. According to him competing destinations in the South and East Asia region, particularly Sri Lanka and Thailand, levy a much lower tax on tariffs giving the industry there huge legroom
to slash rates and attract tourists.
Currently in starred hotels, room tariffs attract the highest slab of 28 per-cent GST which is more than a quarter of the actual tariff, he said.
“The CM has assured to to take up their demand with Union Finance Minister Nirmala Sitharaman who is expected to arrive in the State to chair the GST Council meeting, slated to be held on September 20 in Goa,” Messias said.
