Kolkata, (IANS) : The Travel Agents Federation of India (TAFI) on Thursday said it is hopeful that the Union government will keep the GST rate low for the tourism sector.

“Anything new that gets rolled out will have a teething problem. What we are looking at is the percentage which is going to be implemented. The lower the percentage, it is good for us because this tax component has to be borne by the travellers. We have to keep that mind,” TAFI’s Eastern Region Chairman Anil Punjabi told the media here.

He said the travel agents body has written to the government articulaing the industry’s concerns.

“We are hopeful they will keep the slab low,” he said.

On April 6, Parliament passed four legislations to pave the way for roll out of the historic GST, including the Central GST Bill, 2017, Integrated GST Bill, 2017, GST (Compensation to States) Bill, 2017, and the Union Territory GST Bill, 2017.

The Union Government has announced July 1 as the target date for rolling out the GST, a single tax regime that will replace multiple state and central taxes to create one national market.

“It is a good thing which is happening,” Punjabi said on the sidelines of the announcement of “Indo-US Promotion of Travel & Tourism” convention in the city.

As an extension to the first year of the US- India Travel and Tourism Partnership Year 2017, Indo-American Chamber of Commerce & US Consulate General is organising the day-long convention on May 5.

It is supported and attended by delegates from the Ministry of Tourism, US Embassy, New Delhi, US Consulate General, Kolkata along with Tourism Ministers of states from eastern India.

According to Vasant Subramanyan, National VP, IACC, the objective of the event is to highlight the potential for the eastern region.

One of the segments in east India which could be exploited more is the tea tourism sector, he said.

East India receives an average of 3,000 travellers from the US every month.