New Delhi, May 31: The hospitality and tourism industry is ready with its wish-list for the new government that includes tax sops, permission to import duty-free liquor, cheaper air travel and visa on arrival for tourists.

One of the long-standing demands of the hospitality industry was an infrastructure status under section 80 I (a) of the Income Tax Act which will entitle them to tax concessions.

While the government had already granted them this status under section 10(23) G, industry sources claimed it was insufficient as it only allowed hotels to borrow from financial institutions.

The hotels also want the restoration of 20 per cent rate of depreciation, which has been reduced to 10 per cent from April 1, 2003.

“We want the government to allow duty-free import of liquor and other edible items to be extended beyond the one-year period already granted by the DGFT. This facility should be passed on to restaurants as well, otherwise it will not be feasible for them to serve liquor at a lower price,” said P. C. Pandey, assistant secretary-general of the Federation of Hotels and Restaurant Association of India (FHRAI).

The industry is also seeking uniform sales tax on air turbine fuel (ATF) which, at present, varies from one state to the other. The current rate of sales tax on ATF ranges between 4 per cent and 29 per cent.

“Unless it is made uniform, it will be difficult for the states to attract tourists,” Pandey said.

The industry has also been demanding visa on arrival for tourists. “Our industry is completely dependent on tourists. Unless the government introduces adequate measures to ensure hassle-free travel to India, there is no reason why a tourist will not get attracted to destinations that do not have such problems,” said a tour operator.

“Why is it so difficult for us when it is possible for our neighbouring countries to follow this practice?” he asked.

Speaking on the issue of rationalisation of taxes, Tarun Thukral, general manager of Le Meridien (Delhi), said, “With luxury, expenditure, service and sales taxes differing from one state to the other, it only makes the entire process cumbersome. We need a uniform taxation mechanism not only to reduce the burden of erratic tax collection but also to make life easier for tourists.”

The industry wants the government to upgrade airports in states like Uttar Pradesh and Madhya Pradesh to international standards. It is also keen on a single-window clearance system for private entrepreneurs who wish to invest in hotel projects.