Excelsior Correspondent
JAMMU, Mar 20: The Confederation of Indian Industry (CII) has proposed action points for reviving of the travel, tourism and the aviation sectors in the wake of the ongoing noval coronavirus induced crisis.
As per the CII, these recommendations would allow the businesses to sustain their engagements while simultaneously enabling the Government to adhere to its fiscal responsibilities and mandates for the fiscal year.
For the tourism and hospitality sector, CII has proposed for a six to nine months’ moratorium on all working capital principle, interest payments on loans and overdrafts bringing in liquidity allowing for business continuity, without categorizing the companies as NPAs.
It also suggested for the deferment of GST and advance tax payments and removal of fees for upcoming licenses, renewal of permits, excise exemption for liquor for the hospitality and travel industry across states.
The confederation also suggested 50% cost reduction in ‘Heat-Light-Power’ for sustaining businesses, amendments in the ‘Export of Services’ and the ‘Export Promotion Capital Goods’ on an urgent basis including the grant of extension in export obligation fulfilment period by an additional three years beyond 6 years.
Other actions such as advisory to airlines to not levy cancellation fees and issuance of full refunds; deferring the proposed TCS on travel in the Finance Bill 2020; doubling the overdraft facility for the industry and immediate cash relief to avoid mass-layoffs; and financial support under the MGNREGA or a similar scheme to be extended to the entire industry to prevent employment loss.
For the aviation industry, CII proposes bringing ‘Aviation Turbine Fuel’ under the ambit of GST and provide long term relief to the airlines. The industry also seeks rationalization of VAT across states up to 4% as against the existing differential VAT.
It also recommended a 100% waiver on existing air navigation services charges for the duration of COVID-19. Rebates on landing, parking and housing charges have also been suggested for a temporary period of six months.
CII requested the Government to intervene and urge airports to reconsider bank guarantees and security deposits as airline costs are substantially impacted by fuel costs and also proposed extending unsecured interest free credit terms by oil companies to the sector.
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