Kerala Travel Mart (KTM) Society, a leading tourism body, has expressed serious concern over high rates of taxation under the new GST regime, saying it would stifle the tourism business in the country by making it unsustainable and drive away the foreign tourists to destinations other than India.

A KTM delegation, led by President Abraham George along with KV Thomas, MP, held meetings with Union Tourism Minister Mahesh Sharma, Tourism Secretary Rashmi Sharma, the GST Council Chairperson and officials of the Union Finance Ministry and GST Council, drawing their attention to the serious anomalies in the GST, which would throw the tourism industry into a major crisis.

The high incidences of taxes will make India uncompetitive when it comes to tourism as international tourists will skip the country as a destination. There is almost a 19 per cent tax hike for an Indian product after the implementation of GST. The Centre should address the issue urgently, said KTM president.

The industry has already been reeling under the impact of demonetisation and liquor ban on highways, he said, adding that implementation of GST has also started adversely impacting the business.