This is a significant increase and will definitely send some shock waves but the tour and travel industry that has already learnt and experienced so much during the 2 years long hefty covid outbreak and hopefully it will surely find a work around for this as well. However this tax collection at source is for the tour packages above Rs 50 lakhs. If we look at it from another point of view then in a way it is good and promotes domestic tourism and there is a lot more demand for domestic packages than international ones. There is also a possibility that high cost tour packages can now be split into multiple travel plans by tour operators and travel agents. Furthermore the devil is in detail for both sides in this case. Will it have an impact on the demand in travelers for high cost travel packages is yet to be determined.
Union Budget 2023 Reaction Statement- Mr Nitin Raj, CEO and Co Founder, Riverum
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