<h1>India Considers Abolishing 12.5% Service Tax and Implementing 4% Uniform Luxury Tax to Boost Tourism Sector Growth.</h1> The government is considering measures to enhance tourism sector growth, including abolishing the 12.5% service tax on tour packages and implementing a 4% uniform luxury tax nationwide. These proposals aim to make Indian tourism more competitive by reducing costs. Discussions between the tourism minister and the prime minister have been positive, with plans to address luxury tax variations across states. Currently, luxury tax rates range from 0% to nearly 15% depending on the state, contributing to high costs in the hospitality sector. The industry has long advocated for tax reductions to mitigate the impact of recent declines in foreign tourist arrivals.