GST Cut for Temple-Town Hotels to Boost Andhra Pradesh’s Economy

The Indian government has announced a significant reduction in the Goods and Services Tax (GST) for hotels located in temple towns, decreasing the rate from 12 percent to 5 percent. This change is expected to enhance the revenue of Andhra Pradesh and provide relief to various sectors, including farmers and small businesses. The announcement was made by Neelayapalem Vijay Kumar, chairman of the Andhra Pradesh Biodiversity Board (APBB), during a media briefing on Saturday at the Telugu Desam Party headquarters in Mangalagiri.

Vijay Kumar emphasized that the new tax structure will attract more religious tourists to locations such as Tirumala, Annavaram, Dwaraka Tirumala, and Vijayawada. He noted that the reduced costs in accommodation will likely lead to increased tourist inflow, which in turn would benefit the state’s economy. “With cheaper costs, more religious tourists will get drawn, directly benefiting the state coffers,” he stated.

In addition to the hotel tax reduction, the APBB chairman highlighted another significant change: the exemption of GST on health insurance. This adjustment is anticipated to alleviate medical expenses for families across the region. Kumar pointed out that Andhra Pradesh has already experienced an uptick in GST revenues during July and August, attributing this to the ongoing economic reforms.

Kumar described the new GST reforms as a means to stimulate economic growth without imposing additional burdens on the public. He characterized the changes as a “festival gift before Diwali,” indicating that essential commodities will now become more affordable. “Farmers, the poor, and the middle class will benefit tremendously,” he added, reflecting the broad positive impact of the tax cuts.

The chairman also contrasted the current administration’s approach with that of previous governments, asserting that the Chandrababu Naidu government is utilizing increased revenues for welfare initiatives. He revealed that pensions for the elderly have been doubled from ₹2,000 to ₹4,000. Additionally, mothers are receiving direct benefits through the Talliki Vandanam scheme aimed at supporting their children. The implementation of free bus travel further illustrates the government’s commitment to social welfare.

Overall, these reforms are expected to not only increase economic activity but also enhance the quality of life for many residents in Andhra Pradesh. The combination of reduced taxes and increased government support initiatives aims to create a more vibrant economic environment in the state.