Panaji: Planning a holiday in Goa may now be lighter on the pocket with the coastal state set to become a cheaper tourist destination this season following a major slash in Goods and Services Tax (GST) rates across key sectors.
The sweeping tax cuts announced by the central government are expected to reduce prices of almost everything that tourists spend on — from hotel stays and seafood platters to rented scooters, packaged food and beverages. Officials and industry stakeholders say the move is likely to give a fresh boost to tourism activity while providing relief to thousands of Goans dependent on the sector.
Tourism contributes nearly 16 per cent to Goa’s Gross Domestic Product (GDP) and employs over 2.5 lakh people in hotels, restaurants, and transport services. The latest reforms, aimed at reducing consumer prices by 6 to 11 per cent across categories, are expected to make travel more affordable and improve margins for local businesses.
In the hospitality sector, essential hotel supplies such as toiletries, tableware, and breakfast items will now attract a 5 per cent GST instead of 18 per cent. This 11 per cent reduction in input costs is likely to make hotel tariffs more competitive and stays more budget-friendly for visitors.
The state’s famed food and beverage industry is also set to gain from the move. The GST on restaurant and beverage bills has been reduced from 12 per cent to 5 per cent, which could lower customer expenses by about 6.25 per cent. Popular eateries, beach shacks, and cafés across the coastal belt are expected to pass on these savings to customers. The change will directly benefit over 8,000 workers in Goa’s food and drink sector.
Transport costs are expected to dip as well, with GST on small cars (up to 1200cc) and motorcycles (up to 350cc) cut from 28 per cent to 18 per cent. Tourists hiring taxis, cars or bikes may soon find rentals significantly cheaper. The reform is seen as a major boost for nearly 40,000 Goans engaged in the taxi and bike rental trade.
The GST revisions have also brought relief to Goa’s marine sector. Fishing nets, aquaculture feed, and related supplies will now attract a 5 per cent GST instead of the earlier 12 to 18 per cent, reducing costs by up to 11 per cent. The change is expected to lower operational expenses for fishers and make seafood prices more competitive.
Even bakery and packaged food lovers stand to gain. Goods like pastries, biscuits, noodles, namkeen, pasta and chocolates will now attract a uniform 5 per cent GST, making them 6 to 11 per cent cheaper.
Industry watchers believe the across-the-board tax relief will make Goa a more attractive and affordable travel destination compared to other coastal states, setting the stage for a strong tourist season ahead.
