January 25, 2024
Club Mahindra
Travel and tourism industry asks for a single TCS (Tax Collected at Source) rate on foreign tours from Union Finance Minister Nirmala Sitharaman.
The travel and tourism industry recently has asked the government to coalesce the TCS rate on outbound tours into a single 5 percent slab in the upcoming Budget 2024. Finance Minister Nirmala Sitharaman has been asked to streamline the TCS to lessen the significant advantage enjoyed by international competitors (exempt from this levy).
The simplification of TCS rates on foreign tours is being seen as a positive step towards reducing complexity and promoting ease of doing business for travel operators. This aims to create a more conducive environment for the travel industry to thrive, attracting more tourists and boosting the economy.
The single slab for TCS rates is expected to eliminate confusion and make compliance more straightforward for travel agencies, tour operators, and other stakeholders in the industry. The travel industry has made a collective call for further coalescing from Finance Minister Nirmala Sitharaman. Stakeholders are seeking additional measures and support to address challenges faced by the travel sector, especially in the aftermath of the COVID-19 pandemic.
The travel industry has been one of the hardest hit by the pandemic, with restrictions on international travel and fluctuating consumer confidence. Representatives are urging the government to consider additional incentives, subsidies, or relief measures to aid the recovery of the travel and tourism sector.
As the Finance Minister prepares to present the detailed budget, there is an optimistic anticipation that further announcements will address the broader concerns of the travel industry. The coalescing sought by stakeholders is not just about tax reforms but also about creating a holistic environment that supports the revival and sustained growth of the travel and tourism sector in the post-pandemic era.
Mahindra Holidays & Resorts India Ltd. (MHRIL), a part of Leisure and Hospitality sector of the Mahindra Group, offers quality family holidays primarily through vacation ownership memberships and brings to the industry values such as reliability, trust and customer satisfaction. Started in 1996, the company's flagship brand ‘Club Mahindra’, today has over 300,000 members , who can holiday at 140+ resorts in India and abroad.
