What the Budget does

• An amount of Rs 624 crore to be allocated for the Commonwealth Games
• Five year holiday from income tax is granted to two, three or four star hotels established in specified districts having UNESCO-declared 'World Heritage Sites'. The hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013.
• Corporate income tax rates, surcharge and dividend distribution tax kept unchanged
• Impact on sector (limit to 150 words)
• The development of hotels in world heritage sites will help promote tourism in the country.
• The funds allocated for the common wealth games would help bring in additional supply of rooms in the North India region.
• The measures taken on the infrastructure front will also help improve the prospects of the Indian hospitality sector. If these measures are implemented, then it will go a long way in promoting India with well-connected tourist destinations

Also read: How Budget affects your stocks

Impact on companies

• No major impact on the large five star hotel players

Powered by Equitymaster.com, an independent equity research initiative. Equitymaster is currently celebrating its 10th Anniversary. To know more about the special offers on its equity research subscription services, please click here