The tourism industry is looking forward at direct tax incentives from the forthcoming budget.
The recommendations made by the industry include consideration of foreign exchange earned through tourism to be treated as deemed export, introduction of investment allowance for the tourism sector and creation of foreign currency fluctuation reserve.
The travel and tourism industry has also requested the exemption of the 5 per cent service tax for at least five years and to cap the aggregate indirect tax impact at 15 per cent.
Jehangir N Katgara, president of The Trave Agents Association of India said,
