Tourism Sector in Goa Opposes Proposed 2% Sustainability Charge, Advocates for Revision
Goa's Tourism Industry Fumes Over Proposed 'Tourism Development and Sustainability' Fee
The Travel and Tourism Association of Goa (TTAG) has vocalized its resistance to the state tourism department's suggestion of a 2% 'tourism development and sustainability' levy. According to TTAG insiders, the planned tax is deemed "unnecessary" and demands immediate re-evaluation.
This new tax proposed by the tourism department, intended to fund environmentally friendly projects, has stirred up concerns among industry members. They contend that the levy contradicts the purpose of the Goods and Services Tax (GST), enacted to consolidate all taxes under a single roof.
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"The tourism sector is already overloaded with taxes," TTAG stated in a letter to the tourism department. "Introducing another fee of 2% on each invoice could negatively affect our competitiveness, and the compliance burden will escalate. To our knowledge, no other tourism destination in India, like Kerala and Rajasthan, our main rivals in the incoming market, enforces such a fee."
Industry professionals fear this additional financial obligation could make Goa less attractive compared to other popular vacation spots. Local hoteliers echoed this sentiment, calling the proposed levy "absurd" and hurriedly implemented.
"There are already numerous taxes in Goa, including GST, VAT on alcohol, trade tax, and garbage tax," one hotelier explained. "Adding another tax will only push tourists away." Comparisons were drawn to Thailand and other international travel destinations, which have reduced prices to lure more tourists in contrast to Goa's approach of raising taxes.
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Veteran tourism expert Ralph de Sousa also denounced the move, stressing its contrast with the goals of GST. "It's contradictory to what we're aiming to achieve," Sousa pointed out. "When parallel taxes come into play, it won't help the tourism sector, especially in a global market like today's, where it's not feasible. Alongside GST, we are already subject to heavy local taxes, like garbage tax, professional tax, and other fees collected at the panchayat level."
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Preliminary research by TTAG suggests that Goa’s tourism and hospitality industry generates roughly Rs 2,500 crore in indirect taxes, including GST, VAT, and excise. Additionally, local authorities collect various fees, such as waste management charges, trade taxes, and signboard taxes.
The forthcoming "Tourism Development and Sustainability" Fee, unsurprisingly, isn't sitting well with the tourism industry, who fear the financial burden on tourists and operators without guarantees of beneficial environmental improvements. Their concerns encompass economic exploitation fears, ongoing infrastructure deficits, and broader dissatisfaction with governance in Goa’s tourism sector.
[1] Taxi Mafia troubles the tourism sector https://www.firstpost.com/india/taxi-mafia-troubles-the-goa-tourism-sector-8163851.html[2] Debate on balancing tourism growth, environmental preservation, and local welfare https://www.goanewsdesk.org/news/local-news/10-5-growth-in-goa-tourism-and-its-impact-on-environment[3] Goa's water crisis and its impact on tourism http://www.goanews.com/category/local-news/2602-goa-s-growing-water-crisis-hits-tourism[4] Industry dissatisfaction with the state's approach to tourism https://www.mid-day.com/articles/temporary-ban-on-cabs-specification-of-driver-documents-misinformation/20984589[5] The complete guide to sustainable tourism in Goa https://www.indiamike.com/india/goa/869407-complete-guide-to-sustainable-tourism-in-goa.html
- The tourism industry professionals argue that the proposed 'Tourism Development and Sustainability' Fee contradicts the purpose of the Goods and Services Tax (GST) by adding another financial burden, potentially harming the competitiveness of Goa in the global tourism market.
- In the realm of environmental science, concerns are rising within the Goan tourism sector over the potential exploitation of tourists and operators due to the forthcoming 'Tourism Development and Sustainability' Fee, without assurances of tangible environmental improvements.
- Aside from the tourism and hospitality industry, the tax structure in Goa includes various taxes such as GST, VAT, trade taxes, signboard taxes, and waste management charges, raising questions about the necessity of the proposed 'Tourism Development and Sustainability' Fee and its impact on the lifestyle and travel experience of tourists in Goa.
