Tourism Ministry has advised the State governments and Union Territories for rationalisation of taxes for the growth of tourism sector in the country. It has also asked the states to follow tourism friendly policies which include allotting land sites on revenue sharing basis, creation of land banks and single window approach for promoting hotel projects.

This was stated that Minister of State for Tourism Sultan Ahmed in the Lok Sabha today.He said in order to encourage the growth of hotels, government has announced a few incentives like five-year tax holiday for 2, 3 and 4 star category new hotels located in UNESCO declared World Heritage Sites except Mumbai and Delhi which start operating between April 2008 and March 2013.

The Minister said an investment linked deduction under Section 35 AD of the Income Tax Act has been extended for new hotels of 2-Star Category and above anywhere in India to facilitate the growth of tourist accommodation in the country.