As the Union Budget 2024-25 approaches, industry leaders are voicing their expectations, particularly in sectors like travel and tourism. With the backdrop of impending general elections, the focus is on a budget that strikes a balance between fiscal responsibility and populist measures. Nishant Pitti, CEO and Co-founder of EaseMyTrip, has shared his insights, emphasizing the need for reforms to strengthen and revitalize the tourism sector.
Pitti’s expectations for the upcoming budget revolve around key reforms aimed at catalyzing growth in the country’s tourism industry. He urges the government to allow GST input on holiday businesses and strategically reduce income tax to stimulate growth. Additionally, he calls for streamlining the Tax Collected at Source (TCS) structure to a more favorable 5 per cent slab.
A significant demand put forth by Pitti is a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA). He suggests introducing an annual allowance and expanding the coverage of the entire tour package cost under LTA, surpassing the current limitation to only flight expenses.
Recognizing the challenges faced by the travel and tourism industry due to the pandemic, Pitti anticipates the realization of the full potential of domestic tourism. He looks forward to a budgetary emphasis on infrastructure development, technology integration, and health safety measures across various travel modes, including airports, aviation, roads, railways, and waterways.
Pitti also highlights the underleveraged potential of Bharat’s waterways, encompassing sea and river cruising opportunities. He strongly urges the government to undertake necessary measures for the development of this sector. This call for action stems from the industry’s eagerness for comprehensive reforms that will not only support recovery from the pandemic challenges but also foster long-term growth in the travel and tourism sector.
As the industry eagerly awaits the Union Budget, the expectations expressed by leaders like Nishant Pitti reflect a collective desire for reforms that will invigorate and propel the tourism sector towards a robust and sustainable future. The travel and tourism industry, like many others, seeks measures that go beyond immediate recovery, aiming for enduring growth in the post-pandemic landscape.
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