Panaji: 50 Percent Tax Concession - Goa Vacations to Go Cheaper in Off-season

From Our Special Correspondent
Daijiworld Media Network - Panaji
 
Panaji, Apr 4: Goa vacations during monsoon would be a cheaper affair now with the hotel industry designing attractive and cheaper packages due to the incentive provided by the state government.

Manohar Parrikar-led government has offered 50 percent concession on the luxury tax to mid and upper segment hotels during the off-season. 

The tourism and trade industry, reacting to the sops, has said that the relaxation in the luxury tax will help them to mitigate the hike in the air fares which had made off-season packages expensive.

State Finance Minister Manohar Parrikar in the budget has proposed that all hotels are granted 50 percent concession of tax payable during the off-season from May 1 to September 30 this year, subject to prompt payment of tax and filing of returns in time.

Travel and Tourism Association of Goa (TTAG), which has been lobbying for such concession, said 'this will help to make monsoon package more attractive.’

TTAG spokesman Ralph D’Souza said that the skyrocketing airfares had forced the off season packages to be expensive. “The hoteliers will be able to pass the benefit of concession directly to the customers,” he said.

Unofficial estimate reveals that around 1,500 medium and big hotels will be benefited from the incentive while smaller hotels are exempted from paying luxury tax.

The off-season, last year, was blessed with the long weekends which saved the industry from facing loses, D’Souza said adding that the average occupancy was around 75 percent during weekends while it was approximately 60 percent during week days.

TTAG in their pre-budget memorandum to Parrikar had urged for the concession.

Goa Chamber of Commerce and Industry (GCCI) has termed this reduction as a `smart move’ which will keep economy vibrant even during the off-season for the tourism.

“State will lose on the luxury tax but certainly will gain on the taxes paid by the tourists on other commodities. For example, they will buy certain things in Goa, eat in the restaurant and spend here, which will bring taxes back to the state coffers,” GCCI President Manguirish Pai Raikar said.

The sops, he said, will also spare the hotel employees from facing lay-off during the off season.

The hotels which are charging Rs 500-Rs1,500 per room are charged five percent, Rs 1500-Rs3,000 are charged 8 percent and above Rs 3,000 are charged 10 percent.

Officials from state commercial taxes department said that luxury tax of Rs 130 crore is collected from these hotels annually but with the concession, the tax collection will drop by Rs 25-30 crore.