With many travel agencies suffering from the closure of popular tourist destinations and suffering losses due to the coronavirus, the National Union of the Hospitality Industry proposes introducing “tax holidays” for participants in the Russian industry hospitality.
"We propose considering the possibility of state support for the tourism industry and introducing "tax holidays" for Russian tour operators. In particular, we propose postponing the payment deadlines for property and other taxes to the fourth quarter of this year," TRN reported. OSIG President, General Director of Mriya Resort & Spa Grant Babasyan.
According to the Vice President of OSIG, Alexey Volkov, it is necessary to consider the possibility of amending Article 14 of Federal Law No. 132 regarding the mandatory return of the cost of travel packages due to a threat to the safety of the life and health of the tourist.
"Currently, foreign agencies, transport companies, visa centers, hotels and restaurants do not return money to tour operators, and therefore companies cannot reimburse tourists for the cost of a 100% trip," noted Alexey Volkov. "It is also necessary to strengthen public-private partnerships in the tourism industry and hold a series of information events that will explain the current measures of state support for those types of tourism activities that have been particularly hard hit by the spread of a dangerous viral disease and the current economic situation."
Tour operators in Uzbekistan also asked to support domestic tourism and introduce tax holidays. While the threat of the spread of a dangerous disease is raging in the world, representatives of the tourism industry proposed that the government cancel fines for tourists for refusing air and train tickets, as well as increase the frequency of flights to countries where coronavirus has not yet been detected. In Azerbaijan, they advise providing assistance to small and medium-sized businesses by declaring tax holidays and allocating long-term and interest-free loans for a period of 3-5 years.
Tax holidays or the application of a reduced VAT rate for the tourism business have been discussed in Latvia. According to media reports, China has already abolished the value added tax and provided benefits for restaurant and hotel businesses. Indonesia has allocated financial support for airlines and travel agencies. The Singapore authorities have provided 15% discounts on property taxes and 30% to hotels. The World Tourism Organization has calculated that the European tourism sector is losing a billion euros per month. One way out of the current situation can only be stimulating measures from the state.
Source: trn-news.ru
