JOIN USThe Ministry of Tourism proposes to ease licensing norms for homestays to attract more players to meet the demand from growing foreign tourists inflow.
While the Tourism Ministry has decided to revise the existing scheme so that more people with adequate space to run a bed-and-breakfast homestay for foreign guests come forward, it also intends to reach out to states.
At a workshop held here recently to discuss the plan with states, the Ministry proposed Service Tax exemption and waiver of other levies on power, water etc.
It also suggested collecting property tax at non-commercial rates from such homestays, a ministry official told DH.
“The relaxation in levies and exemption from taxes will encourage people to offer their residential accommodation to tourists under the plan,” he said.
Tourism Secretary Vinod Zutshi chaired the workshop, which was attended by officials of various state governments, besides representatives of hospitality and travel trade industry.
The ministry has initiated the move to meet the shortage of hotels in the country in view of the increase in foreign tourists over the years. In many states, local people have been offering homestay facility to tourists under the scheme for last several years.