Travel & Tourism Sector’s Expectations for Budget 2024: Simplifying TCS to GST Credit

Finance Minister Nirmala Sitharaman is set to unveil the Interim Budget for the financial year 2024-2025 on February 1, 2024, with a focus on fiscal consolidation and nominal economic growth projections. As 2024 is an election year, the budget will be an Interim Budget or a Vote on Account, rather than a comprehensive annual budget, with the new full Budget expected in July after the formation of the new government.

The upcoming budget is expected to maintain stability in the economic landscape, despite challenges such as global economic deceleration and pressures in the agriculture sector. Analysts believe that the easing of financial conditions and robust macroeconomic data will support the overall economic outlook.

In the travel and tourism sector, industry experts are looking for specific changes in the Interim Budget to boost growth. Suggestions include streamlining Tax Collected at Source (TCS) rates, reducing income tax levels to increase disposable income for travel spending, and implementing GST input credit facilities for inbound and domestic tourism.

Experts also emphasize the need for infrastructure development, focusing on setting up new airports through private participation and expanding rail, road, and waterway connectivity. Additionally, the revival of the Inbound incentive scheme and incentives for sustainable travel are highlighted as key areas for government focus in strengthening India’s tourism sector.

Overall, the Interim Budget 2024 is expected to maintain stability and address key sector-specific challenges, with a focus on supporting economic growth and development in the travel and tourism industry.