Amusement parks against local body tax

In a statement, VGP Ravidas, Managing Director, VGP Group, said that amusement parks play a significant role in boosting tourism in the country and there are about 130 amusement parks in the country.

“Most of the amusement rides have to be imported after paying hefty Customs duty. In India, the industry has not received the required support from the central government as well as the state government.  The central government imposed GST of 28 per cent in 2017 and immediately members of Indian Association of Amusement Parks and Industry (IAAPI) members submitted a representation to the Finance Ministry to reduce the tax and subsequently the tax rate was brought down to 18 per cent,” said Ravidas.

On the other hand, the Tamil Nadu government imposed a local body tax of 10 per cent in July 2017, along with GST. 

The local body tax has been imposed only by the Tamil Nadu Government and not by any other State government and the tax had undermined the underlying principle of GST- ‘one country one tax’, said Ravidas.

He also said that unlike other entertainment industry the amusement parks are highly labour intensive, maintenance oriented and needs constant upgradation every year with imported rides. As every day rupee value is falling against dollar it adds further to the burden, said Ravidas. 

Several representations were submitted by the amusement parks to Tamil Nadu government and the concerned ministry, but no action was taken, he added.