BUDGET WISHLIST: Nakul Anand

BUDGET WISHLIST

"India should hope to receive 5 million foreign visitors in 2007 itself, against the WTO's projection of the same being achieved in 2010! Besides, India as a brand is getting established with the success of the "Incredible India" campaign, making it one of the top five destinations in the world"

What should the government do?

The hotel industry ought to be granted infrastructure status. Steps like a corporate tax holiday for the first five years and reduction of 30 per cent profits for tax purposes during the next five years may be considered.

Also, the Excise duty on confectionery items may be reduced, along with rationalising and reducing Customs duty on products (like liquor).

What the government should not do?

The government should stop imposing further taxes. Tourists pay around 20 per cent to 25 per cent of the total bill in the form of taxes. This should be brought down to 4-6 per cent.

CHAMGER SPEAK

CII

Funds should be made available by banks and FIs to finance sectors like hotels and agriculture. The scope and definition of infrastructure ought to be extended to ensure that Section 88 proceeds go to these sectors too. 

FICCI

A hotel building is a commercial property 24 hours a day and should therefore, be allowed a higher rate of depreciation of 20 per cent. Infrastructure status ought to be given to hotels to make them eligible for benefits in Section 81A.