Tax concessions for tourism sector in the state budget
The Kerala government’s budget for 2014 is one of consolation for travellers as well as stakeholders in the tourism industry. Among the budget proposals for tourism is the reduction on luxury tax to 5% for hotels, during the off-season months of June, July and August. The move would encourage hotels to slash room rates, thereby encouraging more travellers to visit Kerala during the off-season period.
The MICE industry in Kerala also stands to benefit from the tax concessions proposed for tourism in the budget. The current luxury tax on auditoriums and convention centers having rents above Rs. 20,000 has come down from 20 to 10%. This will be applicable only to seminars and conventions approved by Kerala Tourism.
The 2014 Budget has also announced Rs. 500 million for the development of prime tourist destinations like Kovalam, Kumarakom, Thekkady, Fort Kochi, Munnar, Wayanad and Wagamon. It has also been proposed in the budget to provide financial assistance for the setting up of a Sea-Life leisure park at Varkala, a popular beach destination in Thiruvananthapuram District of Kerala.
