April 15, 2024


Delighting finance buffs

Covid-19 aftermath: Amusement park industry appeals Centre to provide compensation to tackle financial losses

Indian Association of Amusement Parks and Industries (IAAPI), an apex body representing the interests of amusement parks in India are seeking an urgent stimulus package for the amusement Industry to sail out from the Covid-19, which has seemingly affected the economy.

IAAPI has come up with a slew of measures in order to tackle financial burdens, they are as follows:

1. Removal of GST for 12 months: To make the entry prices economical and to attract the patrons, the apex body has requested the Centre to GST for a year.

2. Deferment of fiscal statutory compliance deadlines: Deferment for 6 months in payment of direct or indirect taxes of all statutory dues like advance payment of taxes, PF, ESIC etc. at the central government level or state government level.

3. Waiver of custom duties on import of spare parts: Waiver on custom duties on import of spare parts in order to bring down the repair and maintenance cost.

4. Reduction of effective rate of interest on loans from financial institutions: Reduction by 200 basis points in the interest rate being charged by financial institutions on term loans, working facilities and other facilities, with immediate full transmission for working capital to reduce the burden on cash outflows.

5. Moratorium of 12 months on payments to financial institutions: A moratorium for a year on instalments of principal and interest payments on loans and working capital from financial institutions, besides a doubling of working capital limits on interest-free and collateral-free terms.

6. Fiscal support for salaries: Support fund for a year on the lines of MNREGA to support basic salaries with direct transfers to affected amusement industry employees.

7. Concessional pricing for water and electricity: Provision of water and electricity to the amusement industry for 6 months on concessional and subsidised rates.

8. Lower rate of income tax and early settlement of income tax refunds: To enhance the cash inflows and reduce the cash outflows to support.

9. Request of Employee State Insurance Corporation: To pay the entire wages of the employees of those units that are covered under ESI for the period during the lockdown period.

As per the advisory issued Heeralal Samariya, IAS, Secretary, Ministry of Labour & Employment, Government of India, IAAPI was requested not to terminate its employees and to pay the wages and salaries of permanent and contractual labourers without any deductions for the month of March 2020.

IAAPI was also asked to pay its employees until the end of the lockdown period.

The measures come at a time when IAAPI is in dire straits due to Covid-19 lockdown, which was imposed on March 22 by Prime Minister Narendra Modi to stem the spread of coronavirus pandemic in India.

The amusement industry generates approximately 80,000 direct employment and contributes to the government exchequer significantly.

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