Kashmir’s tourism players Friday welcomed the recommendation of a parliamentary panel that the central government must roll back Goods and Services Tax on the tourism sector in the state to enable it to flourish.
The Valley-based tourism stakeholders say they are “greatly suffering” ever since the one-tax regime was implemented as “it is leading to a downslide in tourist arrivals in the Valley, which is already facing the brunt of negative publicity”.
The 30-member parliamentary panel, headed by Trinamool Congress leader Derek O’ Brien, has said that the “sensitive nature” of Jammu and Kashmir must be taken into consideration during the development of tourism in the region.
In its report, the panel has recommended to the Centre to roll back GST on J&K’s tourism sector, saying the one-tax regime was “negatively affecting it.”
Hotel rents above Rs 7500 per-room per-night attract 28 percent GST in J&K, while this figure is 18 percent on room rents between Rs 2500 to Rs 7500 and 12 percent on room tariffs between Rs 1000 and Rs 2500.
Hotels renting rooms below Rs 1000 are exempted from GST.
A 5 percent GST is charged from tour operators.
“Tourist arrivals to Kashmir have greatly reduced which is a cause of concern for the tourism players. Everybody is aware that though the tourism sector is not a big contributor to the GSDP, still it is a driving force which generates huge job avenues in the state,” said Mushtaq Ahmad Chaya, chairman of PHD chamber of Commerce and Industries, Kashmir chapter.
He said they demand immediate roll back of the GST “because it has wreaked havoc with the state’s tourism sector”.
Chairman, JKHARA, Showkat Chowdhary said the parliamentary panel’s report on negative impact on Kashmir tourism because of GST “acts as a voice of tourism players in the state”.
“GST has played very adverse role in the state’s tourism sector and as a result tourist arrivals have reduced a lot,” he said.
He said with tourism influx witnessing a dip, hoteliers and restaurants owners are forced to go for job cuts “which affects our youth”.
“At the same time those who have invested in the tourism sector—a taxi driver or a travel agent—are incurring huge business losses”.
He said it would good on part of the central government to roll back GST on tourism sector in the state to enable it to grow and flourish.