Mr. Bill Gates acknowledges Hester for developing a Newcastle Disease Vaccine - Sonalika Tractors aims to expand in Europe and 5 global markets eyes 20% growth - Schneider Electric Announces EcoXpert™ Master Level Partners in Critical Power - NAREDCO TO LAUNCH ITS FIRST PROPERTY EXHIBITION IN MUMBAI - BSE’s India INX gets SEBI nod for listing framework of debt securities - Prime Minister inaugurates Dr. Ambedkar International Centre - Defending champ Rashpal confident of retaining Crown - ICAI International Conference 2017 Concludes Today - adidas partners with Lifestyle International Pvt. Ltd. adidas women’s apparel will now also be available at 16 Lifestyle stores across India - PUBLICATION OF MARATHI NOVEL "HIS DAY" FOR HIZDE [Trans Gender] RELEASED AT A BOOK LAUNCH AMIDST EUNUNCHS - NSE compiles ‘Regulation wise Compilation of SAT Orders’ Senior SEBI officials release an e-book in 5 volumes on SAT orders - Ruchi Soya to scale up Soybean crushing business post favorable government policies - Cloudnine Group of Hospitals Inaugurates First ever hospital in New Mumbai dedicated to mothers & babies - STERLING HOLIDAYS REDEFINING THE INDIAN HOLIDAY LANDSCAPE - Astron Paper and Board Mill Limited’s IPO opens on December 15, 2017, with Price Band of Rs. 45 to Rs. 50 per Equity Share of Face Value of Rs. 10 each - SumTotal Advances as a Leader in Nucleus Research’s Talent Management Technology Value Matrix for a Third Consecutive Year - PRICING OF USD 500 MILLION 3.835% FIXED RATE SENIOR UNSECURED DOLLAR GREEN BOND OF 10 YEAR TENOR BY INDIAN RAILWAY FINANCE CORPORATION LIMITED - Nation pays tribute to Dr Babasaheb R. Ambedkar on his death anniversary along with the Prime Minister and Celebrity - 2nd Global Textile Technology & Engineering Show 1st – 3rd February 2019 - White Hill Music releases brand new song ‘Nain’ from the album ‘Solo’ - Camlin brings Iconic `Flora Classic’ Pencils back - The 5th Edition of China Homelife / Machinex India 2017 inaugurated at BEC, Mumbai - Emotion with devotion needed for Khadi’s growth, says Minister Giriraj Singh - Union Bank of India ties up with RXIL (Receivable Exchange of India Ltd) as a TReDS (Trade Receivable Discounting System) Partner - CJP Uploads Online Petition Intervening For Peace in Ayodhya - The Governor of Maharashtra CH Vidyasagar Rao has expressed grief on the demise of veteran actor Shashi Kapoor - Actress-Model Daljeet Kaurr Mrs Universe 2016 introduced models from 26 cities for Mr, Miss and Mrs IAWA 2017 at Off the Grid Lounge,Mumbai - Music Launch of ‘Dr. Tatya Lahane | Angaar… Power Is Within’ A Mesmerizing Affair - Noor (Non-Interest Bearing Resident Accounts) Personal Accounts Launched By Federal Bank on Milad-E-Sherif - Latest Patented Innovation from Kaspersky Lab Helps Businesses Tackle Stealth Remote Control - VODAFONE INTRODUCES NOIDA’S FIRST FREE WI-FI ENABLED BUS SHELTER - Intersolar India, the Three Day Flagship Solar Industry Conference and Exhibition Opens on December 5 in Mumbai - Mercedes-Benz strengthens its after-sales footprint in south India, inaugurates the first luxury car workshop in Salem - Ravi Dube, Ahsaan Qureshi,Shharad Malhotra,Meghna Naidu, Iqbal Khan, Ishrat Ali, Daljit Kaur & Yogesh Lakhani came for 4th Dashnik Mumbai Press Media Award at Iskcon,Mumbai. - INAUGURATION OF AADHAR ENROLMENT-CUM-UPDATION CENTRE AT MUMBAI GPO - Hema Malini launches “ONE FOR ALL , ALL FOR ONE”, a Tribute and salute to Indian Army - Bollywood Actor and MP Hema Malini during announcement the Synergy, an Indo Georgian Dance fusion in Mumbai - Glamour Rendezvous Diagold cuts the ribbon with Shilpa Shetty - IBS Mumbai develops future leaders through its management education programme - Moneycontrol hosts a special ground event ‘India’s Road Ahead’ - GUJARAT ELECTIONS STARTS TODAY

28% GST detrimental to the existence of amusement park industry

Screenshot_20170530_190924•Industry being categorized alongside casinos, betting and race course.
Mumbai, May 30, 2017 ( GPN) : The recently announced Goods and Services (GST) tax by the Government of India, has put the very existence of India’s amusement – theme park industry at peril with the imposition of a mammoth tax rate of 28%. This new taxation regime puts this industry catering to outdoor entertainment for children, youth and families at par with the casinos, betting and race courses. It also overlooks the essential role played by the industry in creating social infrastructure and attracting tourism.

One year back, in many states, where the tax rate was 0%, then service tax added to 15% and now with GST it is 28% which is a huge burden on the industry.

The amusement park industry, which is still in its budding phase in the country, is a highly capital-intensive industry and requires significant investment both Capex on land and rides to the tune of Rs. 700 crores for mega parks and Rs. 100 crores for mid-sized parks and also the Operational Expenditure (Opex). Furthermore, although being a highly seasonal business, all the parks have to operate on a full capacity even during off seasons.

In spite of operating on such thin margins with cumulative revenue of INR 1,700 crore approximately, the amusement park industry has contributed significantly towards social infrastructure creation and currently employs around 1.25 lakhs across India. Realizing the essentiality, it plays in establishing tourist hubs, more and more states are now keen to host theme parks to attract increasing number of tourists.

Mr. Shirish Deshpande, President, Indian Association of Amusement Parks and Industries (IAAPI) & CEO, Pan India Paryatan Pvt. Ltd., (PIPPL) said, “This is a huge setback for our industry which in essence puts our very survival at risk. Such high taxation is out rightly unsustainable for our industry which as it is operates on a paper-thin margin. Amusement park is not and was never a luxury. It is a social infrastructure giving outdoor entertainment to children and youth of tomorrow’s India, who are otherwise glued to gadgets and digital world. Amusement Parks helps foster bonding with family and friends, relieves stress and provides rush of adrenaline and more. It has a direct correlation with the development of tourism in any state and plays a major role in creating employment both directly and through ancillary and other related industries. In view of this, as a representative of the industry, we would like to urge the government to consider our standpoint and treat the industry in line with hospitality and restaurants which fall in the GST slab of 12%-18%, on top of it this industry does not consume major raw materials and input credit is not more than 2-3% therefore it makes amusement industry unviable to sustain such high GST rate.”

Globally, in markets where ever GST has been introduced, tourism rate has been kept half of the GST rate and in most cases, it is under 10%.  The GST rate in Australia is 10%, Singapore is 7%, Japan 5% , Malaysia 6%. This on one hand stimulates tourism demand and on the other creates an economic multiplier effect on GDP thereby creating business opportunities across multiple sectors such as hospitality, food & beverage, transport among others.

Mr. Rajeev Jalnapurkar, CEO, Ramoji Filmcity said,“Imposing such high rates of taxation is detrimental to the prospects of our business making it unviable besides putting thousands of jobs at stake. The amusement park industry is still at its nascent stage and requires significant support from the government’s end to make the industry flourish in its full dynamism. We strongly advocate the government to rethink on its decision and support our industry by bringing it under the aegis of the tourism industry.”

Such a high tax rate will not only hamper the current Amusement Park industry but will be deterrent to new entrants in this industry.Ends

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.

Be the first to comment on "28% GST detrimental to the existence of amusement park industry"

Leave a comment

Your email address will not be published.


*