FAITH Urges Government to Roll Back Tax Hike on Overseas Tour Packages - News

The Board of the Federation of Associations in Indian Tourism & Hospitality (FAITH), a national tourism policy body, has urged the government to reverse the increase in Tax Collection at Source (TCS) on overseas tour packages announced in the Finance Bill 2023 from 20 percent to 5 percent. 
According to the authority, such a measure has put domestic tour operators at a disadvantage because bookings are shifting to international tour operators, who are not required to deduct this tax.
The FAITH board has also recommended that the government lower TCS from 5 percent to 2.5 percent so that more individuals book their international trips through tour operators operating in India, meeting the professed goal of bringing more people into the tax net. This step of raising the TCS has severely harmed the economic prospects of Indian tour operators, who were just beginning to recover from the effects of the pandemic. The association also believes that local tour providers will become uncompetitive in comparison to overseas tour operators, resulting in not only significant stress but also likely business shutdowns and employment losses.