Tourism, which is considered the fifth pillar of the economy, needs easy taxation norms to boost the hospitality industry, Federation of Hotel and Restaurant Associations of India (FHRAI), the apex body of the sector said on Tuesday.
"There is need for easy taxation, which should be reduced to around 8 to 12 per cent interest from the current 20 per cent to 30 per cent to boost development of three star and four star hotels catering to mid-segment travellers," FHRAI president S M Shervani said.
In India, projects over Rs 200 crore get infrastructure status entitling them to incentives like 8 to 12 per cent interest rate.
"After disturbances in Egypt, India has became the first choice for global tourists. However, the country needs more room capacity to sustain growth in tourism. Reduced taxation will boost infrastructure development in the sector," he said.
He said the FHRAI which is the apex body of the Indian hospitality industry, representing nearly 4,000 members, including hotels, restaurants and associates across the country, would organise a three-day 49th FHRAI Annual Convention from September 12, in Jaipur, to deliberate on multifarious strategic, competitive and policy dynamics.
"The annual convention is taking place at an opportune time, when the hospitality sector is poised to resolutely put the adverse impact of the economic slowdown and global volatility behind us, and instead look ahead, with renewed vigour and optimism.
"We will gain experience and incisive insights of some of the finest minds in industry, government and civil society, to chart a pragmatic road map for Indian tourism's next phase of glorious growth," he said.