Announcement of plans to divest Hotel Corporation of India (HCI) and India Tourism Development Corporation (ITDC) in the next fiscal.
Reduce basic import duty on foreign liquor from 210% to 182%. Expenditure tax to be imposed only on hotel rooms with tariffs in excess of Rs 3,000.
Plan outlay for tourism increased by 50% and 6 new tourism circuits to be identified for development to international standards. |
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Expenditure tax on hotels removed (from 10% levels earlier) and continuation of service tax exemption.
Exemption of capital loans from FIIs u/s 10 - 23 G and import duty on foreign liquor has been reduced from the existing 182% to 156%
Development of airports, seaports, railways and roadways. |
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Apart from the emphasis on developing the road infrastructure in the country, the FM announced a higher FDI limit in sectors like telecommunication, civil aviation and insurance.
Service tax rate increased from 8% to 10%. Service tax imposed on business exhibition services, airport services and travel agents. |