FAITH Proposes ‘PM – HINES’

FAITH Proposes ‘PM – HINES’


The post FAITH Proposes ‘PM – HINES’ appeared first on TD (Travel Daily Media) Travel Daily.

FAITH Proposes ‘PM – HINES’

FAITH Proposes ‘PM – HINES’

FAITH, the policy federation of all the 10 national associations representing the tourism, travel and hospitality industry of has proposed ‘PM – HINES’ or ‘Prime Minister – Holiday in India Export Support’ for the upcoming foreign trade policy to fast track tourism, travel and hospitality exports from India.

PM – HINES is a combination of two existing similar support mechanisms of the government of encouraging duty-free exports and PLI scheme. On similar concept, to increase tourism, travel and hospitality exports from India we are basing PM – HINES on two key market principals. Drawback of all domestic duties, levies and taxes which have become implicitly built into the price of tourism in India. Market linked Incentive based on increasing exports

Thus, the proposed formula for PM- HINES is:

A) Domestic Duty Drawback: 5% of gross forex earnings from tourism travel & hospitality services as base drawback for all tourism exports

B) Market linked incentive:

  • 1 % additional drawback for forex earnings, if gross forex earnings are < USD 50 million, in the financial year
  •   2 % additional drawback for gross forex earnings, if gross forex earnings are > USD 50 million upto USD 100 million in the financial year
  • 3% additional drawback for gross forex earnings, if gross forex earnings are > USD 100 million upto USD 200 million in the financial year
  • 4% additional drawback for gross forex earnings, if gross forex earnings are > USD 200 million upto USD 400 million in the financial year
  • 5% additional drawback for gross forex earnings, if gross forex earnings are > USD 400 million + in the financial year

Thus, any exporter of tourism travel & hospitality services will get the following duty incentive under PM – HINES as follows

  • 6% of their gross forex earnings if gross forex earnings are upto USD 50 m in the financial year
  •  7% of their gross forex earnings if gross forex earnings are above USD 50 million upto USD 100 million in the financial year
  •  8% of their gross forex earnings, if gross forex earnings are above USD 100 million upto USD 200 million in the financial year
  •  9% of their gross forex earnings, if gross forex earnings are above USD 200 million upto USD 400 million in the financial year
  • 10% of their gross forex earnings, if gross forex earnings are above USD 400 million in the financial year

FAITH believes this will immediately start make our tourism travel and hospitality exports competitive globally as tourism enterprises will use the drawback incentive to market internationally, to advertise, to build global partnerships and to reduce overall prices which will lead to much increases forex earnings.

This will also encourage more and more tourism travel and hospitality companies to invest heavily in people, product, infrastructure, which will lead to increased jobs pan India GDP growth and tax collections, FAITH said. It will also encourage global tourism enterprises to invest into India through the collaboration or JV route. Pre – covid, India’s foreign exchange earnings from tourism were around USD 30 bn from around 11 mn foreign tourists and around 17 mn international travellers.

FAITH believes India has a vast unmet global tourism potential and has the inherent cultural, geographical, spiritual and people strengths to take its foreign exchange earnings from tourism, travel and hospitality to USD 200 bn + by 2035 and USD 100 bn by 2045. This has the potential to create almost 10 crore direct and indirect jobs by 2035 and almost 15 crores additional direct and indirect jobs by 2045.

 

 

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