New growth opportunities for tourism

The budgetary provisions have incorporated a series of proposals to promote effective employment opportunities in the tourism sector.

The benefit of Section 10 (23G) has been extended to financial institutions to advance long-term capital to hotels in three star and above categories. The expenditure tax has been withdrawn. The hotel industry shall continue to enjoy exemption from levy of service tax.

The benefit of set off of unabsorbed loss and depreciation on amalgamation will henceforth be available to hotels under Section 72A of the Income Tax Act.

Another key feature of the provisions relate to reduction of basic customs duty on imported equipment for roperway projects to 5 per cent without payment of countervailing duty and special additional duty.

Meanwhile, the budgetary allocation for 2003-04 for the Department of Tourism is Rs 366.3 crore (Rs 3.66 billion)against the revised estimate of Rs 288.63 crore (Rs 2.88 billion) for 2002-03 as against the allocation of Rs 257.21 crore (Rs 2.57 billion) in the Budget last year.

In the Department of Culture, the total outlay for 2003-04 is Rs 543.72 crore (Rs 5.43 billion) compared to the revised estimate of Rs 549.45 crore (Rs 5.49 billion), which was far higher than the actual plan outlay of Rs 486.45 crore (Rs 4.86 billion) in the Budget last year.

Interestingly, a sum of Rs 22 crore (Rs 220 million) has been set aside in the budget of the Department of Culture for the northeast states and Sikkim, which is Rs one crore less than that set aside in the revised estimates for 2002-03.

A sum of Rs one crore each has been set aside for the celebrations of 50 years of the Republic and the tri-centenary of the Khalsa Panth and Rs 10 crore (Rs 100 million) each for the celebration of the birth centenaries of Lok Jayaprakash Narayan and Chaudhary Charan Singh.

UNI