Make travel expenses deductible under the ITR in the budget: hospitality sector

India’s hotel and restaurant industry has urged the Center to make travel expenses deductible in FY23 budget IT statements.

Notably, the sector has been hit hard due to the Covid-19 pandemic and subsequent restrictions imposed to control the spread of infections.

According to Gurbaxish Singh Kohli, Vice President of the Federation of Hotel and Restaurant Associations of India, given that outbound travel is at least 12-15 months away from returning to pre-pandemic levels , the Center should give impetus to domestic travel.

“We have asked the Minister of Finance to allow domestic travel by individuals and businesses to be a deductible expense on their IT returns. This tax incentive could be offered for a fixed number of years until hospitality back to pre-pandemic conditions,” Kohli told IANS. .

“This decision will encourage the over 28 million people who otherwise travel out of the country to holiday in India. We are also calling for a reconsideration of the decision to introduce LTC cash vouchers instead of the LTC fare for government employees central.”

In addition, the hospitality industry has requested the Center to obtain infrastructure status.

At present, only hotels built with an investment of Rs 200 crore or more have been granted infrastructure status.

“This threshold is to be reduced to Rs 10 crore per hotel to give a boost to hotels in the economy segment. This will allow hotels to avail term loans at lower interest rates and also to have a longer repayment,” he said.

“We have also called for hospitality to be granted industry status and set up a corpus fund to incentivize all states to align their policies and compensate for any losses that may arise from its implementation. The lower cost of operations spread over a higher return on investment will reduce the cost of our supply, which will drive demand.”

Among other measures, the industry has requested working capital support with a guarantee from the Center to banks and NBFCs.

Further, he requested that the “Loan Guarantee Scheme for Covid Affected Sectors” of Rs 60,000 crore be notified with immediate effect.

The EU budget is expected to be tabled in Parliament on February 1.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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