Tourism projects may get 10-year tax exemption
04 Jan 2007
New Delhi: The tourism ministry has proposed a conditional 10-year tax holiday for all tourism projects in the country.
While companies would enjoy tax exemption up to 50 per cent of the profit, to avail the tax benefits for the balance amount they would be required to re-invest an equivalent amount of their profits in tourism projects.
The tax concession period will, however, be computed from the date of commencement of commercial operations. The proposed move is aimed at encouraging existing tourism industry to re-invest in the sector.
The ministry has also stressed the need to encourage investments from non-tourism sector into hospitality and tourism projects. In order to attract foreign tourists, it is proposed that tax exemptions should be allowed to tourism establishments for their expenditure on overseas promotional and publicity activities.
Exemptions are also being sought for the money spent on training hospitality and tourism staff in recognised institutes.
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