The Federation of Associations in Indian Tourism & Hospitality (FAITH) on Friday said it has requested the government to withdraw the tax collected at source (TCS) on outbound travel as proposed in the Finance Bill 2020, terming it ‘uncompetitive.’FAITH, which represents almost all major industry associations related to the travel and tourism, said the proposal will make tourism products sold from India expensive by 5%-10% as against when booked through travel companies based outside of India. “Indian travel agents and tour operators are already more expensive due to imposition of 5% GST on tours which foreign travel agents and tour operators are not subject to,” it said.Earlier, the government had, on the industry’s plea, deferred the implementation of TCS to October 1 as opposed to April 1.“FAITH Associations want the tax to go as it creates an unfair playing level for the outbound and inbound travel industry that is attempting to revive…Needless to say it’s impact on employment and viability of Indian travel agents and tour operators will be devastating,” it warned.It added, “FAITH has thus requested that the TCS on outbound travel as proposed in the Finance Bill 2020 U/S 206C & abolish its proposed implementation completely as it is highly regressive and anti- competitive tax on Indian travel industry.”
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