February 3, 2019:
The focus on Tax rebates for the middle class has brought a sigh of relief for them & now they will be able to spend more on vacations.
Various initiatives in the interim budget such as tax rebates for the middle class will benefit the travel & tourism sector, industry players said.
“On the whole, the interim budget is promising for the travel industry, complemented by further tax rebate for the middle-income group more savings, more travel,” said FCM Travel Solutions MD Rakshit Desai.
Expressing similar views, EaseMyTrip Co-Founder & CEO Nishant Pittie said the budget announced promising initiatives that will definitely augur well for the Indian travel & tourism industry.
The focus on tax rebates for the middle class has brought a sigh of relief for them & now they will be able to spend more on vacations.
The government has increased the funds for the tourism ministry to Rs 2,189.22 crore for 2019-20.
“The exemption of income tax for the middle & lower class segment of the society will increase the disposable income, which in line will trigger demand across consumer-focused industries,” Royal Orchid Hotels MD Chander Baljee said.
Highlighting that tax exemptions will provide a boost to the sector, Cox & Kings Group CEO Peter Kerkar said the move will lead to additional savings thereby leading to more discretionary spends & travel & tourism can be one of the beneficiaries.
Thomas Cook India ED & CEO Mahesh Iyer said: “While the interim budget 2019 has seen no direct mention of the travel & tourism sector, focus on tax breaks for the middle class will result in increased disposable income & a cascading boost to consumption- offering the sector an opportunity for increased travel & tourism spends.”
Sambhav Rakyan, Head of Talent & Rewards Consulting, India at Willis Towers Watson said measures on taxation front will have a positive impact on disposable income & savings, which in turn can increase domestic expenditure & enhance the sense of security amongst the salaried class.
L Badri Narayanan, Partner, Lakshmikumaran & Sridharan attorneys said the tax exemptions will go a long way in providing relief. At the same time, the tax mop-up may not be affected too severely as the total contribution as a percentage of overall tax may be low.
Co-Founder & Co-CEO of Drip Capital, Pushkar Mukewar said the finance minister has announced a few steps that could prove beneficial to MSMEs, including lower interest rates & tax changes.