2022 budget ignores plight of tourism sector, says travel body Iato

The Union budget presented by Finance Minister Nirmala Sitharaman completely ignored the plight of the tourism sector, the Indian Association of Tour Operators has said.

“IATO expresses a deep sense of desperation over FM, completely ignoring in its budget speech the fate of the tourism sector and announcing no concessions for the sector when it has borne the brunt of the brunt of the pandemic,” the association said today.

While Sitharaman had acknowledged in his budget speech that hospitality and related services had yet to return to pre-pandemic levels of activity, the emergency credit guarantee program had provided credit additional to over 130 lakh MSMEs and helped them mitigate the negative effects. impact of the pandemic.

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“In view of these aspects, the ECLGS will be extended until March 2023 and its warranty coverage will be extended from Rs 50,000 crore to full coverage of Rs 5 lakh crore, with the additional amount exclusively reserved for hospitality and to related businesses,” the finance minister said.

However, the tour operators body said a loan extension under the ECLGS is of no use to incoming tour operators as they are unable to pay the loan EMIs they have. already contracted.

“Additionally, banks do not issue new loans to tour operators until they have repaid their previous loans. Also, loans are not issued to tour operators who have taken out loans under the ECLGS 1 and 3,” the association said.

The association had asked for tax relief to get through the COVID crisis.
“We had applied for a one-time grant based on our 2019-2020 revenue, GST reduction, restoration and enhancement of SEIS benefits, international airfare tax reduction, and overall tax reduction on the hospitality sector budget presented,” said IATO President Rajiv Mehra.

“There have been huge job losses on top of financial losses in our sector. Just a few years ago we were earning huge amounts of currency for the government and in this hour of desperation we were expecting a taken over by the government,” Mehra added.

The association hopes that the government will consider a substantial alleviation of additional demands.

(Edited by : Priyanka Deshpande)

First post: STI