(a) whether the Government has accorded infrastructure status to the hotel industry;
(b) if so, the details thereof;
(c) whether the grant of infrastructure status would boost the hotel industry;
(d) if so, the details thereof;
(e) whether the Government proposes to provide tax exemptions to tour operators hit by the
global economic slowdown; and
(f) if so, the details thereof alongwith the action taken by the Union Government in this
regard?
MINISTER OF STATE IN THE MINISTRY OF TOURISM(SHRI SULTAN AHMED)
(a),(b),(c),(d),(e) and (f): In order to give a boost to the hospitality sector,the
Government had in the budget 2007-08, announced a 5 year Tax Holiday under the Income Tax Act
to new hotels of two, three and four star category hotels and Convention Centres coming up
between 1.4.2007 to 31.3.2010 in the NCT of Delhi and some neighbouring districts of the NCR.
Subsequently, a 5 year Tax Holiday was also announced for all hotels of 2, 3 and 4 star category
located in all UNESCO declared World Heritage sites (except Mumbai and Delhi) which start
operating w.e.f. 01.04.2008 to 31.3.2013. Further, the Reserve Bank of India (RBI) has issued
revised Guidelines on classification of exposures as Commercial Real Estate (CRE) Exposures
indicating the principles for treating an exposure as CRE exposure or otherwise. Thus, RBI has
classified exposures to hotels outside the CRE Exposure.