Travel Agents Association of India (TAAI), the nodal and largest travel and tourism association in India was expecting that the Government would undertake its suggestions for good governance and ease of doing business for travel trade.
While some of the suggestions made by the association were included, TAAI feels inappropriate on the part Finance Minister to completely ignore travel, tourism and hospitality business in its focus during the Budget.
Jyoti Mayal, President TAAI, stated that we expected much more than what was announced. “However, we believe the Budget 2021 has focused more on ‘spendings’ to enable economic growth through infrastructure roads and financial remedies. The travel, tourism and hospitality sector is completely neglected.” The association would analysis the taxation part once after getting the final print.
She feels that all that presented in the Union BUdget 2021 is surely good for the growth of GDP in long run but the tourism and hospitality needs immediate relief.
Further Dis-investment in Air India is still on the rocks and is expected to be completed by this year. Clarity on the same is eagerly awaited by the association, the main stakeholder partner hereto. For Rail packages over the years this shall be an advantage since the plan is to create a ‘Future Ready’ railway system by 2030. Passenger logistics shall have advantage in the circuits and infrastructure.
Further, in its pre-budget submission to the Government TAAI had requested extension of LTC for a period of 2 years. “In order to provide relief to employees, it is proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring of specified expenditure,” stated Jyoti Mayal.
Jay Bhatia, Vice President, TAAI stated, “Private Public Participation (PPP) has been set forth in a big way along with privaisation. We hope this shall include in Travel and Tourism trade too. We see that the revenue shall come from borrowings only.”
“We had proposed single employee benefits/security under one provisio which shall care for labour welfare, social security, health, safety family etc. We are happy to note prima facie that with the implementation of the four Labour codes,” he added.
For the first time globally, social security benefits will extend to gig and platform workers. Minimum wages will apply to all categories of workers, and they will all be covered by the Employees State Insurance Corporation.
Women will be allowed to work in all categories and also in the night-shifts with adequate protection. At the same time, compliance burden on employers will be reduced with single registration and licensing, and online returns. This shall assist members of the trade.
