The state Budget 2014 announcing tax concessions for tourism industry

Kerala government was announcing major tax concessions for the tourism industry in the state Budget 2014.
The budget, presented in the state assembly on January 27 by Finance Minister K M Mani, offers several tax concessions to the tourism industry. The major announcements include a reduction in luxury tax to 5% on hotels from June to August to promote off-season tourism. The step is expected to help reduce tariff in hotels and resorts in the state's major backwater and hill destinations. The government has also reduced luxury tax on convention centers and auditoriums with a daily rent exceeding Rs 20,000 to 10 per cent from the existing 20 per cent, in a bid to promote MICE tourism (Meetings, Incentives, Conferencing and Exhibitions), for facilitating national and international conferences, conventions and seminars. Other announcements for the tourism industry relate to substantial increase in allocation for marketing destinations and implementing special tourism projects. "The tax concessions announced in the Budget will certainly help the tourism industry, which plays an important role in the state's economy," said Kerala Tourism Minister A P Anilkumar. "

The cut in luxury tax in the off-season is expected to increase the number of tourists arriving in Kerala during the off-season months from June to August. Kerala Tourism Secretary Shri Suman Billa said the concessions would give a huge impetus to the state tourism industry. The luxury tax cut for convention centers and auditoriums is expected to directly help the tourism sector in Kerala through MICE tourism, a big money spinner for tourism abroad. "The reason quoted by many companies for not coming to Kerala for organizing international conference, seminars and conventions was high tax. Now with that reduced, we are expecting a major boost to the sector by attracting more travelers and companies from abroad. While India earns thousands of crores of rupees in foreign exchange by hosting international conferences and conventions.

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