IATO writes to TN for roll back of Road tax

Default, News — By on May 25, 2012 at 11:02 am

Warns of severe consequences for state tourism and industry stakeholders if roll back is effected soon

ATN DeskFollowing a recent increase in roadtax for tourist vehicles in Tamil Nadu(TN), Indian Association of TourOperators (IATO) has shot out aletter warning the state tourismdepartment of the consequence forthe state tourism as well as theindustry at large. Terming theincrease in Road tax for touristvehicles as ‘exorbitant’, the nationalbody of inbound operators says thatthis has come at a time when tourismis limping back to normalcy.

“This sudden announcement in theincrease of road tax on touristvehicles in Tamil Nadu is verydisheartening for the tour operators,who are trying their best to revive thesluggish tourism industry with theirconsistent efforts globally bypromoting various destination ofIndia including Tamil Nadu,” saysSubhash Goyal in the letteraddressed to the TN TourismSecretary S S Jawahar. The letter hasalso been copied to ADG, Ministry ofTourism, Government of India,Devesh Chaturvedi with the requestto take up the matter with the StateGovernment. IATO has also sent acopy of the letter to A C Mohandas,Commissioner of Tourism &Managing Director, Tamil NaduTourism Development Corporation.Goyal points out in the latter that theindustry is already over-burdenedwith various taxes e.g. service tax,luxury tax, road tax, toll tax, exciseduty, VAT, entertainment etc. andnow it will be further overburdenedwith the increase of more than 100%in the road tax! This will hamper theinterstate movements and ourmembers will be forced to avoidTamil Nadu in their South India TourPackages and instead move theirtourist groups to other states, whichare tourism friendly, warns Goyal.

IATO members have already floatedpackages in the interactional marketsabout 6 months in advance for thecoming season and it will be difficultfor the tour operators to absorb suchhigh increase from their thin margin,which will inter-alia force them tocancel the operation of their groupsin Tamil Nadu, says Goyal in theletter while drawing attention to theconsequences for the industry as wellas tourism sector in the state.IATO has requested the StateTourism Secretary to personally takeup the matter with the State TransportDepartment in order to maintain thestatus quo and growth of tourism inthe state.

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