THIRUVANANTHAPURAM: The tourism industry in the State is divided over the proposals for the sector in the Budget-2010, presented by Finance Minister T. M. Thomas Issac.
Confederation of Kerala Tourism Industry (CFTI) president E. M. Najeeb said the government had gone ahead with the long-pending demand of the hotel and tourism industry to reduce luxury tax of hotels from 15 percent to 12.5 percent and from 10 percent to 7.5 percent.
The Budget allocation for tourism has been increased to Rs.100 crore from Rs.90 crore and the allocation for marketing of the destination has been increased in the Budget to Rs.25 crore from the present Rs.15 crore.
The Kerala Service Tax Act allows hotels up to three star category to pay taxes compounded. Mr. Najeeb said the proposals were a favourable gesture to the industry that is coming out of the negative impacts of the recession.