Mr. Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Limited

The proposal in the Union Budget 2023, to increase the rate of TCS from 5 to 20 per cent for purchase of overseas tours & overseas remittances other than education will significantly increase the upfront cash outflow for end customers. It will drive more of these customers to use alternate channels that are outside the domestic tax net. We urge the Government to reconsider this. 

On the positive side: 

  • Income tax rebates announced in the budget will result in an increase of disposable incomes which is welcome. 
  • Tourism promotion being taken up on a “mission mode”- with active participation of states, public-private partnerships and convergence of government programs will drive domestic tourism growth. 
  • Strong infrastructural focus in the announcement of 50 new airports, heliports, water aerodromes and revival of advanced landing grounds will enhance regional access and connectivity. 
  • Financial support via loans to be provided to states for developing enhanced road and rail connectivity will help uplift of the domestic tourism sector. 
  • The selection of 50 destinations to be developed as holistic tourism packages – combined with the focus on local level tourism & the promotion and sale of GI products & handicrafts will give a boost to local arts and artisans.

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