Maharashtra govt rolls out tourism policy with fiscal benefits.

THE STATE government has rolled out a new tourism policy, offering a slew of fiscal benefits for large investments in the sector on the lines of the state’s industrial policy, despite certain reservations from the finance department.

The finance department had objected to offering benefits similar to those given for manufacturing industries as per the state’s industrial policy, across Maharashtra, even in places that already attract a significant number of tourists.

“The finance department was of the view that refund of Value Added Tax, input tax credit, and other such incentives may not be necessary in areas of the state that already see a large influx of tourists. For example, five star hotels in Mumbai may not necessarily need such benefits. There are many places in Maharashtra where the market itself supports tourism-related investments, such as Mumbai or Pune,” said a finance department official who did not wish to be named.

He added that finance department was of the view that such benefits at the most could be considered for areas where tourism is underdeveloped, but has ample potential, such as the Konkan belt. The state cabinet, however, cleared the policy in its meeting despite the objections. Under the new policy, the state government will classify projects as ultra mega, mega projects, large, medium and small projects, while dividing the state into three tourism zones, giving benefits accordingly. As per the policy, all tourism-related projects with a fixed capital investment of a minimum of Rs 500 crore or promising a direct employment generation of 750 anywhere in the state will be categorised as ultra mega projects.

Among various benefits, the policy allows tourism projects several fiscal incentives, such as concessions in stamp duty, electricity duty, entertainment tax, leisure tax, refund of VAT, and so on, akin to industrial projects. While announcing the policy in the state Legislative Assembly, Chief Minister Devendra Fadnavis said, “The tourism sector had the status of being an industry since 1999. However, it never enjoyed any of the benefits and incentives offered to the industries. The new policy will give these benefits.” With the new tourism policy, the state government hopes to attract investments worth at least Rs 30,000 crore, and create a minimum of one million additional jobs in the tourism sector. The state also hopes to double revenue from tourism in five years. Besides financial benefits, the tourism policy also stresses on training and skill development in the industry, equipping guides, and giving politeness lessons to taxi drivers. Accordingly, it promises a grant of Rs 12,500 per person for skill development in tourism, and a grant of Rs 5,000 per person to be trained as a guide. The government will also demarcate special tourism zones and tourism districts from time to time, and promote theme-based tourism, especially religious tourism, medical tourism, agro tourism and nature tourism. The policy talks about a single-window system for approvals, pre-approved venues for events, special incentives for women and handicapped entrepreneurs, and additional floor space index for the tourism projects. It also does away with the current mandate of getting licences for tourism units renewed every year, relaxing the requirement to once in five years.

Indian Express