KOCHI: The tourism industry, struggling to come out of the crisis created by the liquor ban in the state, has plunged into another crisis due to the Goods and Services Tax (GST) hitting the sector. “GST is the worst thing that has happened to the tourism sector in the country and the state. The government will have to do something to resolve the problems facing the sector as early as possible,” said Jose Dominic, managing director and CEO of the CGH Earth.
The cumulative tax burden on the tourism sector amounts to 33 per cent after the GST and such a high rate is a major drain for the sector, he said. The GST rate of 28 percent for luxury hotel is one of highest in the world, he added. “We have taken up the matter with the Union finance minister Arun Jaitley and he agreed that the rates needed a revision. However, a decision has not been taken so far in the issue,” Mr Dominic said.
The tourism industry is demanding zero per cent duty for the sector which the finance minister declined to accept. “If the proposal of zero per cent is unacceptable the government should fix the rate at the minimum slab,” he added. The peak tourism season in Kerala commences in October and lasts till February.
