Union Budget 2007-08, Tourism

India is becoming an attractive tourist destination. According to a recently released PATA report, India’s inbound arrivals peaked at a new record level of 4.4 million in 2006.Besides earning foreign exchange; tourism industry generates employment in large numbers. The Tourism players should be given incentives in the form of tax reductions but sadly nothing was done in this union Budget 2007-08 to support this booming industry in India.

Union Budget presented on February 28, 2007 has dashed the hopes of tourism Industry. There was nothing much to talk about except a increase in allocation for development of tourism infrastructure from Rs.423 cr to Rs. 520 cr and the five- year tax holiday to 2,3 and 4 star hotels in Delhi and NCR.

• 20,000 more hotels for the 2010 Commonwealth Games in Delhi.
• Private importers of aircraft: 3% import duty to be levied including helicopters.
• ATF (Aviation Turbine Fuel) benefit extended to all small aircraft.
• 5-year tax holiday for 2,3, and 4-star hotels and convention centres with a seating capacity of 3000 in NCT (National Capital Territory of Delhi—New Delhi, Old Delhi, and Delhi Cantonment).