Amusement park industry seeks single digit GST rate
By Press Trust of India
February 19, 2017. 12:02 IST
There are nearly 480 amusement parks in the country
The country's amusement park industry, whose combined turnover is expected to touch Rs 6,000 crore in 2020, has urged the union finance ministry for a single digit goods and services tax (GST) levy.
"We have written to finance ministry officials for a single digit GST levy on the amusement park industry," Ajay Sarin, president of Indian Association of Amusement Parks and Industries (IAAPI) told PTI here.
There are nearly 480 amusement parks in the country, the prominent being AdlabsImagica, Esselworld, Nicco Park and Wonderla.
He said in the present taxation regime the industry is subject to entertainment tax and service tax.
Entertainment taxes are being levied by the states at different rates, with the effective tax rates going up as high as 50 per cent at times.
"Since we are a part of the tourism sector, we have requested the ministry to withdraw the levy of service tax as well once GST is levied," he said.
The industry, he said, generated direct employment to 80,000 people and indirect employment to 1.5 lakh people.
According to him, the tax rates in other Asian countries like Malaysia, Thailand, Singapore, China and Japan were well below 10 per cent.
The industry will hold its 17th expo in Mumbai from February 22 where exhibitors from 20 overseas countries would participate.
He said it was a very labour intensive industry and manufacturing of equipment like the roller coaster and others also fetched good foreign exchange from exports.
A typical break-up of the revenue showed 55 per cent was generated from ticket sales, 35 per cent from food and beverages and the balance from merchandising and branding.