• Ek Bharat Shreshtha Bharat programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

• Government to enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in the passenger segment. An enabling eco-system will be provided for the States which will have the choice of adopting the new legal framework. Entrepreneurs will be able to operate buses on various routes, subject to certain efficiency and safety norms.

• Road passenger traffic segment is totally unreformed sector which suffers from several impediments. Abolition of permit-raj will be medium term goal.

• Abatement rate being rationalized at 70% in respect of services by a tour operator subject to certain conditions, with effect from 01.04.2016. 3.5%/5.6% of amount charged 4.2% of amount charged

• Proposed Krishi Kalyan Cess @ 0.5% on all taxable services. Its proceeds would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers. It will come into effect from 1 June 2016.

• Exemption to the services of transport of passengers, by ropeway, cable car or aerial tramway being withdrawn, with effect from 01 April 2016, which will be charged at 14%.

• e-tourist visa scheme to be extended to 150 countries by March 2016.

• The Outlay for the Ministry of Tourism is Rs 1500 crore. A provision of `900 crore is earmarked for infrastructure schemes of the Ministry. The total outlay for the

Outlook

The road passenger traffic reforms as announced in the Union Budget 2016-17 would help to make more efficient public transport facilities, greater public convenience, new investment in this moribund sector, creation of new jobs for our youth, growth of start-up entrepreneurs and other multiplier effects. These measures would also push up the growth of tourism sector. However, the imposition of krishi kalyan cess of 0.5% of services tax would be negative for hotel and tourism sector.

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