Panaji, Apr 16 (PTI) Stakeholders of the hospitality industry in Goa have welcomed the state government's announcement in the Budget to provide a 50 per cent rebate in the Goods and Services Tax and other perks for those investing in hotels in the state's hinterland.

Chief Minister Pramod Sawant, who tabled the state budget during the legislative assembly session last month, had announced incentives for the hospitality industry.

Sawant said that to promote infrastructure in the hotel and medical tourism sector, the state government has proposed a 50 per cent rebate on the state GST, exemption in stamp duty and registration, a waiver in other processing charges to investors who set up hotels of at least three-star or above category or a hospital in the hinterland talukas of Bicholim, Sanguem, Canacona, Quepem, Dharbandora, Ponda and Sattari.

The Budget will be passed in the next session of the House scheduled in June.

Gaurish Dhond, president of the Goa Hotel and Restaurant Association, lauded the chief minister's decision to promote three-star hotels and hospitals, as medical tourism also plays a major role in the tourism sector.

Basuri Desai, owner of 'The Inaka Goa', an eco-friendly resort in Canacona, said he has already been operating an eco-tourism stay in Cotigao Wildlife Sanctuary, promoting hinterland tourism.

He said the tax incentive will attract more investment in the hospitality sector.

"As an entrepreneur operating in hinterland tourism, it gives me much-needed encouragement to expand my business in lesser-known areas," he said.

Desai said the move will generate employment for locals and preserve the culture and ecological heritage of the hinterlands, and the correct implementation of the policy could transform the sector.

Goa is already on the world tourism map, and lesser-known areas, including Canacona, Sanguem, Quepem and parts of North Goa like Pernem and Sattari, will benefit from the decision, he said. PTI RPS ARU KRK

GST rebate for hotels in hinterland to incentivise investment, hospital projects and local employment in targeted talukas. The state budget provides a GST rebate alongside exemptions from stamp duty and registration and waivers of other processing charges for investors who establish hotels of at least three star standard or hospitals in specified hinterland talukas; eligibility depends on project standard and location, and implementation follows legislative passage and administrative rules to operationalise and verify the concessions.