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.

ASSAM TOURISM TO FOLLOW SIKKIM TOURISM

Guwahati, May 25: Dispur has sought help from the Asian Development Bank (ADB) to improve tourism after the sector was accorded top priority by the new Congress government in the state.

Principal secretary, tourism, Assam, H.S. Das, said a project proposal was sent to the ADB, which has given a positive nod, at a seminar on tourism yesterday. The seminar was attended by leading tour operators of the state and tourism officials.

The ADB will study the proposal in detail to find out whether it suits its scheme of assistance.

At present, Sikkim is the only state in the Northeast to have received assistance from the ADB. The $20-million assistance to Sikkim was given to attract more tourists. The loan is under the Southasia tourism infrastructure development project.

Das said chief minister Tarun Gogoi a few days back had called a meeting with senior government officials wh-ere he indicated that tourism was one of the top priorities.

“Gogoi is keen to develop the tourism sector to make it turn around,” Das said.

He said the 13th Finance Commission had provided Rs 50 crore to the tourism sector for five years. “We want to use the funds for development of the tourism sector,” Das said, adding that Rs 50 crore was in addition to other assistance from the Centre. Assam was given Rs 66.07 crore for 18 projects in the 11th plan.

The basic thrust of the Assam Tourism Policy 2008 is to place the tourism sector on a high priority in the economic development of the state and to improve the quality of the existing services. The Indian Hotels Company Ltd (Taj group) is setting up a five star hotel in the state.

Das said the Assam Tourism Council has been formed to translate the policy into action. It has members from the government and the private sector. “The private sector should get more involved in the council,” he said.

A report on infrastructure gaps in the tourism sector in Guwahati, including Kaziranga, commissioned by the ministry of tourism in 2010, found that domestic tourists were more concerned about facilities like hygiene at wayside restaurants and dhabas, public conveniences along roads/streets, garbage disposal, drinking water supply, traffic management, sewerage and drainage system.

Former executive director of Sikkim Tourism Development Corporation, P.K. Dong, who was present at the seminar, said Assam tourism needs to be well-packaged and well-priced to attract visitors. He called for efforts to improve infrastructure and develop more tourism destinations.

“There are new market trends and tourists are looking for new virgin destinations now,” Dong said.

The Sikkim tourism industry earns Rs 700 crore a year.

The day 4 of the Sikkim CM Marathon StateTour



DR.PAWAN CHAMLING

 GANGTOK: The fourth day of the 36 day marathon tour of the Chief Minister began with a visit to Maniram Singhithang GPU where while addressing the gathering the Chief Minister asked the gatering to be more precise and productive in their demands to the government instead of coming with petty requests.
He also informed that the development work in Sikkim has reached to such a level that if now people and government work in tandem, the dream of turning Sikkim into an eco-city state will be realised in no time.

Dr.Chamling also mentioned that without the support of the people his hands will be tight and the kind of work which he dreams to execute won’t be possible. The day which marked the second year completion of fourth term in office became more significant when the Chief Minister inaugurated the first ever MGNREGA Rajiv Gandhi Sewa Kendra at Tanjzi Bikmat GPU which comes under the umbrella of BAC Namthang. The Chief Minister also inaugurated the computer room in the same premises where Management Information System of MGNREGA will be available for general public which will give the access to all the information required under the scheme.

Mr. Chamling also visited Adult Learning Centre there and interacted with the students who are the older folks of the region. He was very encouraged to see that the number of old people are coming forward in the centre to learn which in turn has been a source of inspiration for learning and education which goes on to show that age can be no bar for learning. Addressing a huge gathering inthe Kendra he emphasised on having social demands rather than materialistic and indivisual ones. Mr. Chamling informed that the Happiness Index of the people which he hopes and aspires to give them can only be attained if people come up and rise above the personel and small requirements. He also added that the mindset of the people if changed to positive then the Happiness Index will rise automatically.

After that the Chief Minister on his way also inaugurated the newly built two storied school building of Rateypani High School. He emphasised on having quality of work and said that the infrastructure development which has taken place in Sikkim can only sustain if the general public take it as their own property. Addressing on the demand of the people with regard to the establisment of Indian Institute of Information Technology the Chief Minister said Rateypani will be considered on priority for establishment of such institution and necessary survey for acquiring the land shall be done.

The Sikkim Chief Minister Chamling also visited Government Junior High School, Kateng, Nagi Gonpa, Kaijaley and Sumin Khor on his days visit and interacted with the people

“Sikkim, Traveller’s Companion” launched

GANGTOK: Yishey Doma and Parvin Singh’s book on Sikkim, “Sikkim, Traveller’s Companion”, was launched by Governor BP Singh and Chief Minister Pawan Chamling as part of the State Day celebrations here at Chintan Bhawan on Monday.
This book, a first in the series of travel guides proposed to be published by Trysts and Traces seeks to capture “the true colour and meaning of life in Sikkim to help tourists to find just those unexplored aspects”.
Smartly designed and crisply written, the book, as all tourist guidebooks should be, is impressively visual and comprehensive.
“Like the State has much to offer to the world, we have tried to assemble the varied aspects of Sikkim in a nutshell, from wildlife to food and from treks to skiing. That is why, it took us two years to complete this book and during this time we travelled to all parts of Sikkim to make sure nothing is missed out,” says photographer Parvin Singh, who is also the publisher of the book, in a press statement.
The 264-page book, which also includes a pull out-map of Sikkim and a map on Gangtok, is priced at Rs 499. Besides Sikkim, the book will be available in all leading bookshops around the country, airports and even online, the publisher informs.

Sikkim, Traveller’s Companion is Ms. Doma’s and Mr. Singh’s second book on Sikkim. The duo’s first coffee-table book, “Sikkim, the Hidden Fruitful Valley” was published in 2008.
Ms. Doma is a poet and journalist based in Gangtok, Her previous books include the coffee-table book Sikkim, the Hidden Fruitful Valley and Legends of the Lepchas published by Westland/ Tranquebar in 2010.
Mr. Singh is among the country’s best travel photojournalists. He was recently conferred with the best ‘Travel Photojournalist’ by Hee Bermiok Tourism Development and Heritage Conservation Society towards promoting Hee Bermiok.
The book, after a brief overview on Sikkim, plays into three sections – Destinations across the four districts, each opening with a map, Experience Sikkim featuring pilgrimage sites, adventure tours with detailed trek maps, information on cuisine and cultural variety of the State and Tourist Information, containing information such as tourist offices, important numbers, train & flight schedule, travel agencies, endless accommodation options, book shops, etc.