Indian Tourist Transporters Association demands tax sops to procure new vehicles for the Commonwealth Games in 2010

Indian Tourist Transporters Association (ITTA) has asked the central and state governments to grant tax concessions for the procurement of new vehicles for the Commonwealth Games 2010 in New Delhi. The demand was voiced by Sarab Jit Singh, President, ITTA at the two-day annual conference of the Association in New Delhi last week (September 26 &27). Ambika Soni, Union Minister for Tourism & Culture, who inaugurated the conference, urged the tourist transporters to set benchmarks for the Commonwealth Games. Soni also informed the gathering that the Ministry of Tourism (MoT) has asked for separate serial codes called ‘TV’ for tourist vehicles to be identified and also single window tax collection for tourist vehicles from the Ministry of Shipping & Surface Transport. The other delegates present during the conference were A K Walia, Finance Minister, Delhi; Haroon Yusuf, Transport Minister, Delhi; and VK Duggal, Indian Union Home Secretary.

At the conference Singh put forward three important demands for the centre and state governments to consider. He asked for the transporters to be permitted duty-free import of foreign vehicles to be deployed during the Games and also demanded exemption from excise duty and VAT for vehicles purchased in the country. As a third incentive, ITTA asked MoT to consider five per cent interest subsidy on finance borrowed from financial institutions and banks for procurement of new vehicles, similar to MoT’s current assistance to tourism infrastructure development projects in remote areas.

Singh also informed that the tourist transporters required to make an estimated investment of Rs. 700 to 800 crore to procure new fleet of vehicles for the Games. “ITTA’s own estimate is that Commonwealth Games Committee will require minimum of 4,000 vehicles. This includes both Indian and imported vehicles,” stated Singh. He also urged the Games Organising Committee to come out with clear guidelines as to the number of vehicles required so that transporters can start the ground work for the same.

While making huge investment on procuring new fleet, transporters also fear a lull or slow down in the business after the Games. “It must be noted that there has been a lull in demand and business in China after the Olympics, as also in Melbourne after the 2006 Commonwealth Games. In view of the sudden high demand of vehicles for the Games and the expected lull subsequently, we want the centre and the state governments to come forward with necessary assistance to make our investments viable and sustainable in the long run,” Singh concluded.