Union Budget 2021 Expectations for Travel, Tourism: The industry needs support from the Government of India in Budget 2021 to recover from the crisis and regain its position as a large employment generator, Aditya Agarwal, CFO, Cleartrip said.
Budget 2021: Despite the far-reaching impact of COVID-19 on the industry and without any aid in the form of a stimulus package, the travel and tourism industry is trying to find its feet and take initial steps towards recovery, Deep Kalra, Founder, and Group Executive Chairman, MakeMyTrip Ltd. said. (Image courtesy- UNDP India Twitter)
Union Budget 2021-22 Expectations for Travel, Tourism: Covid pandemic rattled the travel and tourism industry but people and the news of Coronavirus vaccines have managed to provide a glimmer of hope for the sector which is one of the largest employment generators in India. Now, travel and tourism industry experts are pinning hope on Budget 2021 and expect the Narendra Modi government will take note of the sector’s role in the entire economic value chain and make announcements in this regard.
“Despite the far-reaching impact of COVID-19 on the industry and without any aid in the form of a stimulus package, the travel and tourism industry is trying to find its feet and take initial steps towards recovery. In the short-term, the industry is looking for assistance in the form of rationalization of taxes, an extension of moratorium period, and waving off certain statutory obligations. We hope that in the upcoming Budget 2021 the Government takes note of the sector’s role in the entire economic value chain and makes the long-due decision of including travel and tourism in the concurrent list,” Deep Kalra, Founder, and Group Executive Chairman, MakeMyTrip Ltd. said.
“As domestic tourism holds key to recovery, I-T deductions on domestic travel undertaken by the taxpayer will help in encouraging people to travel more domestically – further benefitting the larger ecosystem. On the corporate travel front, the Government should set sight on incentivizing MICE business – that would perhaps be the last to recover and offer 200 per cent weighted deduction to companies on MICE expenses over the next two years or more. Overall, the industry is looking towards certain concessions and rebates in Budget 2021 for travel and tourism to pick pace and move towards pre-Covid levels,” Kalra said.
“The travel industry is one of the largest employment generators in the country. The industry has been hit severely due to the pandemic and is still in recovery mode. Loss of revenues has had a massive impact on all industry participants’ balance sheets, and many have had to undertake significant efficiency measures to deal with the crisis. Therefore, the industry needs support from the Government of India in Budget 2021 to recover from the crisis and regain its position as a large employment generator. The travel industry could benefit from a relaxation in TDS applicable to travel agents, GST applicable to travel agents, TCS applicable to e-commerce operators, and a simplified input mechanism for travel agents. Additionally, the industry would also benefit from the easier availability of both working capital and long-term credit. These measures will help rebuild balance sheets, preserve jobs, and enable the industry to ride through the disruptions caused by the pandemic,” Aditya Agarwal, CFO, Cleartrip said.