Casino Pride Director Shrinivas Naik Pens Letter to Goa Government Asking For 3-Year Income Tax Holiday

Casino Pride Director Pens Letter to Goa Government
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  • Attreyee Khasnabis June 8, 2020
  • 3 Minutes Read

Recently, Casino Pride Director Shrinivas Naik, in a letter to the government, has pointed out several suggestions for the government to help mitigate the financial woes of the tourism industry. He has suggested that the government should pay the entire EPF and ESIC contribution of all employees from the Labour welfare fund and grant three-year income tax holidays, including Minimum Alternative Tax (MAT), with effect from FY 20-21.

Shrinivas Naik
Shrinivas Naik

As of June 8, the total number of COVID-19 confirmed cases in India has touched 257,000, with a death toll of 7,200. The coastal state of Goa has registered 267 positive cases, but no deaths yet. Since March-end, Goa has been under lockdown with all public establishments, including casinos forced to shut shop.

The government had, as part of lockdown 3.0 on May 4, announced significant relaxations. However, establishments like casinos, bars, and restaurants have been asked to remain closed.

In his letter, Naik said that due to the COVID-19 pandemic, the tourism industry worldwide has been dealt a significant blow. Additionally, with no cure for the virus in sight, tourists would be wary of traveling in the foreseeable future.

“Many of the countries would keep their borders closed for a longer period of time. This would result in a 60 percent to 80 percent reduction in travellers especially the leisure tourism sector,” wrote Naik.

He added that to get a maximum share of remaining tourists who would include business travelers, the industry should take aggressive steps in marketing and promotion. This includes reducing room rates, additional freebies, and facilities, advertisement, and sales promotion, etc.

“Hence in order to reduce the overall cost of operation and increase funds for disposal in the hands of the industry, the government should provide tax holidays including MAT, for at least three years beginning from FY 2020-21,” he wrote.

He urged the authorities, “Allow the industry to pay minimum sustenance allowance to its employees during lockdown period and post lockdown period of six months.”

This was among the ten suggestions Naik has made to the state and central government. He also requested banks to waive off interest on borrowed capital for six months and defer EMI’s for six months. Another request for financial service providers is that banks should allocate working capital loans at a subsidized rate of interest. In the case of employees, he asked the government to order employees, who avail salary during the lockdown, to stay with an institution till at least April 2021.

Other demands placed by Naik are state governments should not charge MD charges on electricity for six months. They should order Internet Service Providers not to charge monthly lease line charges for the lockdown period. “Both state and central governments should not charge any license fees for six months,” he added.

He also asked the GST council to allow input credit of all fixed expenses incurred during the lockdown period from the GST payable post lockdown.

The casino industry in Goa has always been stuck on a balance beam. For a majority of 2018 and 2019, the industry was shrouded under a cloud of uncertainty as the government dragged its feet on the much-awaited casino policy.

On March 31, the Chief Minister Pramod Sawant and his cabinet granted a further six-month extension to offshore casinos to operate from River Mondovi, till September 30, as the government is yet to identify an alternative site for their relocation. Three more months remain for this latest extension to expire.

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