Tour, travel agents ask for consistency in taxation

Tour operators and travel agents in Punjab, Haryana, Himchal Pradesh and Jammu & Kashmir have asked for uniformity in taxation (like entry tax and passenger tax on taxi's and buses), if the state governments want to give a boost to the tourism sector.

They alleged the four states were promoting tourism in their respective state individually, but the need of the hour was to have a collective approach and ensure seamless movement to tourists.

Talking to Business Standard, Divine Destination (a tour facilitation company) CEO Gunbir Singh said, "North India has a number of places of tourist importance; we have Himalayas, Shimla, Kufri, Golden Temple, Srinagar and also the Hariake Wetlands, which is one of the international recognised wetlands. Each state, whether it is Punjab, Haryana or Himchal Pradesh, is leaving no stone unturned to boost the tourism in their states, but the need of the hour is to have collective approach."

He added a tourist travelling from Delhi to J&K had to face hardships and have to stop at many barriers for toll taxes. There is no free movement between the states, which deter the tourists.

Kuldeep Singh, a taxi operator said, "Besides passenger tax, which is about Rs 2,225 for 3 months charged by Punjab, Haryana, Himachal Pradesh (Haryana-Rs 875, Punjab-Rs 750, Himachal Pradesh-Rs 600) and Rs 60 per day by J&K, the tourist have to shell out extra bucks towards toll tax. If one wishes to visit J&K from all the way to Delhi, one has to shell out Rs 160 for one side towards toll tax. Also, if a visitor wants to go to Kullu-Manali, he has to pay Rs 300 per day, which is quiet hefty amount. All this discourages the tourist because tour operators pass on these cost to them."

He added while the three states were eyeing to promote eco tourism, religious tourism, rural tourism, heritage tourism, apart from infrastructure, uniformity in taxation is another key area which would boost the sector.

"The state governments of all the four states should ensure free movement of passengers across the states, if they want to promote tourism. It is becoming increasingly important that the states in the northern region evolve a common strategy to give thrust to the industry," Gunbir said.