Taxes have made Goa a costly tourist destination

Excessive taxation, triggered by VAT, has forced Goa's hotel industry to hike tariffs by 25 per cent in the past couple of years making the coastal state an expensive destination, feel tourism experts. "While Goa has witnessed growth in tourism, concerns are raised on pricings as it is competing with southeast Asian countries, which are much cheaper holiday zones," Travel and Tourism Association of Goa (TTAG) president Ralf D'Souza said. Hospitality industry players feel that Value Added Tax (VAT) regime in Goa has overburdened the industry, which is forced to pass on the extra liability to clients. "Three years back, VAT was implemented in Goa. Earlier the industry was governed by sales tax, which was 5.5 per cent. But VAT scaled the tax to 12.5 per cent," D'Souza said. "20 per cent VAT was imposed on liquor further hiking the prices. There was total 17 per cent hike in taxes. Hoteliers added seven to eight per cent of their own jacking prices by 25 per cent" he said. He observed that luxury tax too witnessed a jump from 5.75 to 8.75 per cent.

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