TCS on Foreign Tour Packages: The report ‘Unlock the Potential: A Look in Outbound Tourism’ prepared by Nangia Andersen LLP in collaboration with FICCI has demanded reduction of TCS on foreign tour packages.
TCS on Foreign Tour Package: In order to promote foreign tourism, the government has taken various steps as well as to reduce TCS (tax collected at source) on international travel packages and allow foreign ships to operate in Indian territory i.e. foreign ships in Indian maritime zones. Should consider allowing. This was said in a report released on Sunday.
needed to promote foreign tourism
The report titled ‘Unlock the Potential: A Look in Outbound Tourism’ prepared by Nangia Andersen LLP in association with FICCI states that outbound tourism in India is expected to grow at a CAGR (Compound Annual Growth Rate) of 11.4 per cent from 2023 to 2032. is likely to.
According to the report, growth in the Indian travel and tourism industry depends on rising income levels and changing living standards, diversified tourism offerings and regulatory support.
What measures can the government take?
Some measures have been suggested in the report, which the government can implement. These include withdrawing TCS, increasing partnership opportunities with other countries, agreements with airlines and allowing foreign ships to operate in Indian territory.
It said that although the government has withdrawn the proposal to increase TCS from 5 per cent to 20 per cent on foreign travel packages up to Rs 7 lakh per annum. Apart from this, the tax hike on packages above Rs 7 lakh has been postponed till October. The report further stated that the demand of industry bodies to reduce TCS to 2.5 per cent has not been met.
