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| Friday, 12 September 2003 |
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Outbound tour operators oppose 1% CESS charge By Shirajiv Sirimane Leading outbound tour operators are protesting against a proposal by the Sri Lanka Tourist Board (SLTB) to charge a Tourism Development Levy from this month. This tax is to be charged on a monthly basis from the total net turnover. The Outbound tour operators whose main revenue is generated from commissions earned from selling air tickets said that with the introduction of this tax their profits will reduce further. According to the President of the Travel Agents' Association of Sri Lanka (TAASL) Nihal Perera the airlines last July reduced their agency commission from 9% to 7%. "This tax will take off nearly another 1% from our profits and we will be left with hardly anything," he said. "If the 1% Tourism Development Levy is not exempted the travel agents handling outbound ticketing will be faced with further serious problems to carry on in business resulting in the closure of several travel agents causing unemployment among the Travel Trade." Perera said that they hope that the Secretary to the Ministry of Tourism Dr. P. Ramanujam and Additional Secretary, George Michael will act in the interest of the outbound travel agents, and ensure that the Tourism Development Levy of 1% will not be imposed on outbound travel agents. "When preparing the regulations the Ministry had earlier recommended the exemption, which was accepted as granted by all outbound ticketing Travel Agents." He said that it is very unfair for the SLTB to charge this 1% from outbound operators as they are paying an annual license fee to the Civil Aviation Authority. "We are simply selling air tickets, make our earnings from the commission and have very little to do with the SLTB." He said that all travel agents handling outbound ticketing do not come under the category of promoting Sri Lanka as a destination for which the 1% Tourism Development Levy is imposed, intended to provide funds for the Tourist Board to market Sri Lanka as a destination. He said that the association is also hoping to make a submission in this regard to Prime Minister Ranil Wickremesinghe through the Minister of Tourism Gamini Lokuge in due course. When contacted an official of the SLTB said that the decision in this regard had been taken by the government. "Every organisation approved by the SLTB has to pay this CESS," he said. |
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