Manish Sareen Advocates for GST Reduction to Enhance Himachal Tourism
Call for GST Adjustment in Hotel Bookings
Subhash Mahajan
Dalhousie:
Manish Sareen, a former candidate for the Dalhousie Assembly, has urged the central government to lower the Goods and Services Tax (GST) on hotel accommodations to support the hospitality sector and promote tourism in Himachal Pradesh.
At present, a standard GST rate of 12% is applied to hotel room rates that fall between ₹0 and ₹7500. Sareen contended that this tax rate disproportionately impacts budget travelers, especially those from lower and middle-income backgrounds, leading to economic disparities in the tourism sector.
He suggested a new GST framework:
- 5% GST for rooms costing up to ₹3500
- 12% GST for rooms priced between ₹3501 and ₹7500
Sareen highlighted that implementing these changes would revitalize the hotel industry, boost bookings in both private and government-operated hotels, and make travel more affordable for budget-conscious tourists.
Additionally, he plans to engage in detailed discussions regarding this proposal with R.S. Bali, the Chairman of the Himachal Pradesh Tourism and Civil Aviation Department. Sareen expressed hope for a favorable resolution and encouraged all four Members of Parliament from the state to bring this matter to the floor of Parliament.
This appeal arises amidst ongoing conversations about GST reform, with industry leaders and policymakers seeking methods to streamline tax systems and bolster local economies.