Exemption of entry tax

Governor’s order exempting entry tax on gods for construction, expansion and modernization of hotels in the State will go a long way in promoting hotel industry and the affiliated tourist industry in the State. Generally, some important construction material needed specifically for hotels where tourists from foreign countries would like to stay, is not manufactured in the State and needs to be imported from outside the State. But these goods are subjected to heavy entry taxation and the hoteliers had been demanding exemption of the entry tax. The Governor has taken a soft view of their request on the basis of the merit of the case. Tourism is of major importance to the State whether it is religious or non-religious tourism. Very large numbers of tourists of either category visit the State annually and in view of that hotel construction has become very popular. However, tourist hotels have to be equipped with superior material in terms of furnishing furniture, sanitary fitting, paints, flooring and other related things. With the exemption of entry tax, the industry is bound to receive boost. This is a very practical measure of boosting the tourist industry in the State. Exemption of tax is also applicable to replacement of furnishing and furniture in hotels. But the facility is available up to the end of February 2015 only.
Finance and Tourism Departments are involved in this scheme and necessary instructions have been issued to them to give practical shape to the order. There are conditions and riders so that the exemption is not misused. There could be more of such measures to strengthen Tourism industry in the State. We have laid stress on identifying more tourist destinations in all the three regions of the State and upgrading tourist service in all its phases, from transport and communication to hotel service and cultural programmes.

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