Union Budget 2025 | Expecting comprehensive tax coverage for hospitality industry, says ELIVAAS founder

As the government gears up for the presentation of the Union Budget 2025 on February 1, the hospitality industry wants to be rescued from high operating costs and provided with an encouraging environment for business venture, like holiday homes and villas, says Ritwik Khare, Founder and CEO, ELIVAAS, a pioneering luxury villa and apartment management startup.

"One of the industry's primary expectations is comprehensive tax coverage. A 100 per cent tax coverage across different segments could alleviate financial pressures. It can also ensure that important things like food services, accommodation, and travel are adequately supported. Adjusting the taxation rates can make tourism more attractive and will encourage both domestic and international visitors," Ritwik Khare said.

Ritwik Khare said that the hospitality sector, fueled by increasing disposable income and the government's commitment to tourism infrastructure development, is poised for significant growth and the country’s success in hosting global events like the G20 and the ICC Cricket World Cup has attracted global brands and investors.

"Hospitality players are ready to open a record number of properties across the country, with emerging destinations like Ayodhya and Lakshadweep set to become popular hotspots this year. Therefore, the hospitality industry also seeks investments in tourism infrastructure and sustainability initiatives, which would not only create new employment opportunities but also increase productivity," Khare said.

"The hospitality community now needs clear policy and fiscal measures that will help it get ready for the new year. Therefore, we expect a balanced budget that is going to promote real estate investment and employment generation in the hospitality sector. This will set us up for a resilient and thriving industry," he added.