Big decision of Jharkhand cabinet, now traveling in the state will be expensive, tourist tax will be imposed from 2% to 5%

News India Live, Digital Desk: Jharkhand government has taken a major step to increase the state’s revenue and modernize tourism facilities. In the cabinet meeting chaired by the Chief Minister ‘City Tourist Tax’ The proposal has been officially approved. Now tourists staying in hotels, resorts and home-stays in Jharkhand will have to pay an additional tax in addition to their room rent.

Highlights of the cabinet decision:

Making changes in the tourism policy, the state government has divided the tax rates on the basis of hotel categories:

Tax Rates (2% to 5%): * This tax is applicable for general and budget hotels. 2% Could be close to.

This rate is applicable for luxury resorts and hotels rated three-star or above. 5% Can go till.

Where will it apply?: This rule will be effective on all municipal corporation areas and major tourist centers of the state (like Ranchi, Deoghar, Jamshedpur and Dhanbad).

Use of funds: The Cabinet has clarified that the amount received from this tax will be used especially in tourism areas. Security (Tourist Police), cleanliness And Basic Infrastructure Will be done for development.

What will be the impact on tourism industry?

Mixed reactions are being seen on this decision of the government:

Government’s side: Jharkhand has immense tourism potential (like waterfalls, religious places and wildlife). Additional funds are required to promote these destinations globally, which will be met through this tax.

Concerns of traders: Hotel associations and tour operators believe that the sudden increase in tax may reduce the number of middle class tourists, due to which small businessmen are likely to suffer losses.

Other important decisions of the Cabinet:

Apart from tourist tax, the cabinet has approved some other important proposals:

Strengthening local bodies: To make municipal corporations self-reliant, they have been given powers to collect some additional fees.

Employment Generation: A special package has been announced to provide employment to local youth through new projects in the tourism sector.