Hospitality Sector Urges Government for Infrastructure Status and Tax Reforms

Hospitality industry leaders are urging the government to grant infrastructure status to hotels in the upcoming Union Budget, to make investment in new properties more attractive. They also seek tax breaks, sustainable practice incentives, and improved connectivity infrastructure to boost India's tourism industry and economic growth.

India's hospitality industry is calling on the government to accord infrastructure status to hotels in the Union Budget, aiming to make investments in new properties more appealing. They argue that the current categorization as luxury or 'sin goods' hampers growth and potential contributions to the economy.

Industry leaders are also advocating for tax breaks and subsidies to promote sustainable and eco-friendly practices. They believe such incentives will accelerate the tourism sector's growth, positioning it as a key driver for GDP growth and job creation.

'The sector is burdened with high taxation, excessive licensing, approvals, and compliance requirements,' said Hotel Association of India (HAI) President KB Kachru. 'Granting infrastructure status would allow hotels access to softer finances and attract more investment.' The sector, which contributes about 10% of total employment in India, aims to play a pivotal role in India's growth to becoming the third-largest economy by 2027.

(With inputs from agencies.)