Will have to shut shop once GST is enforced: Mumbai amusement park owners
Mumbai city news: Amusement parks have been clubbed with racecourses and casinos. They will have to pay 28% tax on their earningsUpdated: Jun 15, 2017 12:22 IST
Amusement park owners in Mumbai may have to shut shop once the goods and services tax (GST) regime comes into effect.
Reason: they will have to pay 28% tax on their earnings, as they have been clubbed with racecourses, casinos and betting.
India has 104 amusement parks, of which 25 are in Maharashtra.
A mega amusement park requires an investment of upto Rs700 crore, while Rs100 crore is needed to set up a mid-sized park. The manpower and technology increase the operational expenditure of a park.
Shirish Deshpande, president, Indian Association of Amusement Parks and Industries (IAAPI), and CEO, Pan India Paryatan Pvt Ltd, said, “We are a capital-intensive sector. We require a huge amount of money to build and run the show. We are managing on very thin margins. If the GST comes into effect, there is no way we can survive.”
According to IAAPI, GST rates for tourism are below 10% globally. The GST rate in Australia is 10%, Singapore is 7%, Japan 5% and Malaysia 6%. “As amusement parks serve as entertainment centres, they should be clubbed with hotels and restaurants that are charged 12-18 % GST,” said Deshpande.
Rajeev Jalnapurkar, CEO, Ramoji Filmcity, said, “Imposing such high taxes will make the business unviable and put thousands of jobs at stake.”
First Published: Jun 01, 2017 16:23 IST