GST move to cut tourism services tax won't hit revenue: Goa CM
In recent meeting, the GST Council resolved to decrease tax on hotel room tariff from 28 per cent to 18 per cent.
Panaji: Goa Chief Minister Pramod Sawant, on Tuesday, said the GST Council's decision to slash tax on tourism services will not affect revenue collection in the state.
Sawant reasoned that the move is set to boost tourism in the state which will compensate for the potential revenue loss.
In recent meeting, the GST Council resolved to decrease tax on hotel room tariff from 28 per cent to 18 per cent.
Sawant said Goa has witnessed a 26 per cent deficit in its GST collection, which is being compensated by the Centre.
"The Centre will continue compensating us for the difference for another two years. We will take appropriate measures in consultation with the Union government after that," he said.
Tourism is the mainstay of revenue for the coastal state which is a preferred beach destination for domestic as well as foreign tourists.