(a) the details of fiscal steps taken by the Union Government to boost
tourism during each of the last three years;
(b) whether the Federation of Indian Chambers of Commerce and Industry
(FICCI) proposed the reduction of luxury and service tax to boost
tourism; and
(c) if so, the details thereof and the action taken so far by the
Government?
MINISTER OF STATE FOR FINANCE (SHRI NAMO NARAIN MEENA)
(a): The Government has announced various financial and fiscal incentives
for the hospitality sector including five-year tax holiday under the
Income Tax Act for two, three, and four star category hotels located in
all United Nations Educational, Scientific and Cultural Organisation
(UNESCO) World Heritage sites (except Mumbai and Delhi) for hotels
starting operations from 1 April 2008 to 31 March 2013; a five-year tax
holiday was announced in 2007-08 for two, three, and four star category
new hotels and convention centres coming up between 1 April 2007 and 31
July 2010 in the National Capital Territory of Delhi and some neighboring
districts of the National Capital Region. An investment-linked deduction
under Section 35 AD of the Income Tax Act was announced in the Union
Budget 2010-11 for establishing new hotels of 2-star category and above,
all over India, thus allowing 100 percent deduction in respect of the
whole or any expenditure of capital nature.
(b): No sir. The Federation of Indian Chambers of Commerce and Industry
(FICCI) has not specifically proposed the reduction of luxury, service
tax to boost tourism.
(c): Does not arise.