2% sustainability fee defeats purpose of GST: Tourism sector

Panaji: The tourism department’s proposal to introduce a ‘tourism development and sustainability’ fee has been met with consternation, with stakeholders pointing out that it goes against everything that the industry has been recommending to state govt. Industry players also said that the introduction of a new tax for the sector defeats the very purpose of GST, which aimed at subsuming all taxes

According to sources, the Travel and Tourism Association of Goa has said that the fee is “uncalled for” and needs a rethink. “The tourism industry is highly taxed. 

If a levy of 2% on every invoice is imposed, our competitiveness will be adversely affected, and the compliance burden will increase. No other tourism destination in India, including Kerala and Rajasthan, which are our main competitors in the inbound market, levy such a fee,” TTAG said in a letter to the tourism department. 

Source : https://timesofindia.indiatimes.com/city/goa/2-sustainability-fee-defeats-purpose-of-gst-tourism-sector/articleshow/111467788.cms