TOURISM AS AN INDUSTRY

Tourism has been declared an Industry in the state since 1987. All incentives available to other industrial units are also available to tourism related industries. The salient features of incentives are as follows :-

1. 30% subsidy on all industrial units subject to maximum ceiling of Rs.25 lakhs.
2. 5% additional subsidy for units belonging to Scheduled castes, Scheduled tribes, Other Backward communities, women etc subject to overall ceiling of Rs. 25 lakhs.
3. There is provision for reimbursement of 4% interest on capital loan subject to a ceiling of Rs.20,000/- per year per unit.
4. All units set up after 1-4-95 will get sales tax exemption for a period of 5 years.
5. Reimbursement of standard certificate, fees/charges subject to maximum ceiling of Rs.50,000/- per unit.
6. At present luxury tax is imposed at the rate of 10%. if room rent in a hotel is more than Rs.60/- per day per person
7. There is no sales tax on food and beverage supplied in the hotels.
8. Excise duty on liquor in the state in force is as follows :

• IMFL other than Beer Rs.90/- per LP Liter.
• Beer at the rate of Rs.6.35 per BK Liter.
• There is no sur-charge on sales tax but additional sales tax at the rate of 0.25% collected from those who are paying sales tax more than Rs.1,00,000/-.

9. Road Tax.

• Tourist Taxi with sitting capacity ( 5+1) - Rs.252/- per annum.
• Tourist bus with sitting capacity (35+1) - Rs.1752/- per annum.

10. State permit fee.

• Tourist Taxi for first 5 years - Rs.350/- and for extension of 2 years - Rs.350/-
• Tourist bus for 5 years - Rs.400/-.

11. Composite fees:

• Taxi/motor cab (upto 6 seater) @ Rs.300/- per quarter per state (other than Home State).
• Maxi cabs ( 7-13 seater) @ Rs. 3000/- per quarter per state ( other than home state).
• Omni buses ( 14-35 seater) @ Rs. 12000/- per quarter per state ( other than home state)