New Delhi: The travel and tourism industry has urged the government to restore the Service Exports from India Scheme (SEIS) benefit to 7 percent, as was paid earlier, to support the sector that is one of the worst-hit by the pandemic.
In a representation to the Commerce Ministry, the Indian Association of Tour Operators (IATO) has said that while the decision to release SEIS scrips for FY20 for tour operators is a welcome move by providing us the benefit.
For the last 18 months, inbound tour operators had almost zero income with several of them folding up their businesses. In view of this, the SEIS benefit was awaited for a long time as this would provide some financial succour to help the tourism sector tide over this crisis.
“Tourism has contributed significantly to the exchequer and has been a major employer as well. In a distressful situation like this, the tourism sector looks for assistance from the government for survival and revival,” the IATO said in a statement.
Under SEIS Scheme, exporters of selected services were entitled to an incentive on the net foreign exchange earned in the form of duty credit scrips. These SEIS scrips could be used to pay import duty or can be encashed by selling it to any importer.