Sikkim Travel agents and Hoteliers seek service-tax exemption

Gangtok, June 14: Travel agents and hoteliers in Sikkim today announced the formation of a joint action committee to campaign for the inclusion of the tourism industry of the hill state in the North-East Investment and Industrial Promotion Policy so that they are exempted from paying service tax.

Over the past few weeks, travel agents and tour operators in the hill state are under pressure from the union finance ministry to pay up service tax at a rate of 10.3 per cent of their annual turnover with retrospective effect from 2006.

Members of the Travel Agents Association of Sikkim (TAAS), Sikkim Association of Adventure Tour Operators and Sikkim Hotel and Restaurants’ Association have come together to form the joint action committee.

“Some tour operators have received notices asking them to pay up service tax with effect from 2006. We had no knowledge about the service tax and hence, we never collected it from our clients. Paying the tax with retrospective effect is out of question as the amount would run into lakhs of rupees and many would have to wind up their businesses,” said former forest minister, Sher Bahadur Subedi, currently a hotelier.

He said investors in other industries were getting huge subsidies under the NEIIPP.

Those setting up industries in the eight northeastern states (including Sikkim) get subsidies in the transport, power and excise sectors and are exempted from service tax.

“We are demanding the inclusion of tourism in the NEIIPP as it is a local industry,” said Subedi, who has been selected as the chairman of the joint action committee. He said appeals would be made to the Union finance ministry to roll back the retrospective period.

“The service tax was imposed in the 2006 budget but we in Sikkim and the other northeastern were never sensitised to it. We have not realised the tax from our clients. Now suddenly the taxmen have become very active and are sending summons to us,” he said.

The organisations have already approached Sikkim chief minister Pawan Chamling and the Northeast MPs Forum with their demands.

The tour operators said barring their counterparts in Assam, those in Sikkim and other the northeastern states had no idea how to collect and pay the service tax.

“The imposition of the tax will also mean that tourists will have to pay more,” a tour operator said.

Sources in the state government said Chamling had already written to Pranab Mukherjee terming the imposition of the tax as “quite harsh” .

Sources said the forum had also written to the prime minister about the issue.

In a letter to Manmohan Singh on May 25, forum president Mukut Mithi had urged the Union government not to tax the tourism industry.

“The youths are getting employment in this sector and it is not the time to impose the service tax. Many of them do not know how to keep books of accounts. Hence, there is a need to give a window of at least five years to prepare them,” Mithi wrote in his letter.

Sikkim welcomes world tourist:TAAS president Lachungpa

World Tourism Day 2009 : tourism celebrating diversity

Gangtok, September 23 : Adding perspective to the role of globalization in balancing tourism influx and environmental and cultural sustainability, this year’s theme of World Tourism Day as “Tourism - Celebrating Diversity" aims to shed light on the most human side of the industry – its capacity to build understanding, foster social inclusion, and promote higher standards of living. The Day will commemorate on coming Sunday.

Increasing awareness on tourism and its role as an industrious movement and its undeniable prospective to generate employment, state income, and other benefits whether directly or indirectly in the economy of the state is pleasing, said Palzor Lachungpa, President Travel Agent Association of Sikkim (TASS).
The theme of the year is suitable for Sikkim in view of its Bio-diversity nature as big collection in small room, he added.
Government of Sikkim declared year 2010 as tourism year and we hope world tourist will be certainly magnetize by Sikkim’s peace and Bio-diversity nature, Lachungpa added. Sikkim is the most peaceful state in India as well as world tourism destination.
He denied some media reports on sinking flow of tourist in Sikkim following Chinese incursion reports appeared in media. As per his observation, decline of tourist flow is global phenomenon of this year. Clarifying the reports of media he said, ‘I am the resident of Lachung, North Sikkim close with China border. But I never seen any extra army movement and never heard any danger. Sikkim is very peaceful and we are ready to welcome world tourist as our family guest.’
Purpose of the World Tourism Day is to promote awareness among the international community of the importance of tourism and its social, cultural, political, and economic value.

TAAS reaches out to help local tourism

Gangtok,August24: Travel Agents Association of Sikkim (TAAS) yesterday conducted a familiarization trip of Aritar-Dalapchand region in East Sikkim with an objective to help the local tourism stakeholders in promoting tourism in the region. The team was led by TAAS President Paljor Lachungpa. The team conducted a survey of Lampohkeri Lake and other nearby tourist attractions of the region before meeting the two local tourism bodies - Aritar Dalapchand Lamphokeri Development Society (ADLDS) and Dalapchand Aritar Village Tourism Cooperative Society (DAVTCS).
The TAAS team addressed the representatives of the two local bodies and sensitized them on the need of capacity building in order to advance the tourism efforts of State government. TAAS president reminded the two bodies that they have earlier held a meeting some years back. He highlighted that the two bodies must identify products.
TAAS needs feedback mainly on the quality and quantity of home stays and other attractions so that tourists are encouraged to stay there for a couple of nights which will bring benefit and revenue to the local people, Mr. Lachungpa told the local stakeholders.
TAAS general Secretary Lukendra Rasaily informed that the team had found Aritar Dalapchand region very promising for ecotourism and village tourism.
“We have three wings - adventure, eco tourism and village tourism. We are trying to link up with the government for rural tourism. We are ready to extend all possible help to the local tourism societies”, Mr. Rasaily said.
At Aritar, tourism minister Mr. Bhim Dhungel had an informal chat with TAAS members. The minister requested the apex body of tour operators in Sikkim to promote “Year of Toutism-2010”.